Smith Family Financial Plan A Case Study Solution and Analysis
Introduction
Smith Family Financial Plan A Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Smith Family Financial Plan A Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Smith Family Financial Plan A Case Study Help has certain strengths that can be utilized to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Smith Family Financial Plan A Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position enables the company to think about a number of development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Smith Family Financial Plan A Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Smith Family Financial Plan A Case Study Solution as well, however the development might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually posed particular threats to Smith Family Financial Plan A Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Smith Family Financial Plan A Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be computed. The overall monetary efficiency of the company could be evaluated by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Smith Family Financial Plan A Case Study Analysis is growing and the business is rather effective in drawing in a large number of consumers at a prospective cost.
Together with it, the second chart which shows the annual development in the Smith Family Financial Plan A Case Study Solution overall properties, reveals that the company is quite efficient in including worth to its possessions through its incomes. The growth in properties shows that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis regarding the distribution of total earnings of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting Smith Family Financial Plan A Case Study Analysis service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out useful materials etc. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the Smith Family Financial Plan A Case Study Analysis. However, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Smith Family Financial Plan A Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Smith Family Financial Plan A Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Smith Family Financial Plan A Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining market development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business needs to first collects the information related to the customer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a threat to the business's long term existence, but the situation can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
