Smith Family Financial Planning 4 Case Study Solution and Analysis
Intro
Smith Family Financial Planning 4 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing market in basic and Smith Family Financial Planning 4 Case Study Help in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Smith Family Financial Planning 4 Case Study Analysis has certain strengths that can be used to minimize the threats, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Smith Family Financial Planning 4 Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong financial position permits the company to think about several advancement chances without any worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which might increase restraints for the company in implementing its advancement program. The weak points of Smith Family Financial Planning 4 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining because 2008, affecting Smith Family Financial Planning 4 Case Study Analysis as well, however the growth could be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented particular dangers to Smith Family Financial Planning 4 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Smith Family Financial Planning 4 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall revenues of Smith Family Financial Planning 4 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite efficient in attracting a large number of clients at a possible cost.
Together with it, the second graph which shows the annual development in the Smith Family Financial Planning 4 Case Study Analysis total properties, reveals that the company is quite effective in adding value to its assets through its revenues. The growth in properties shows that the overall value of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis concerning the circulation of overall profits of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic 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 impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Smith Family Financial Planning 4 Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Smith Family Financial Planning 4 Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Smith Family Financial Planning 4 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Smith Family Financial Planning 4 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the declining industry growth. For that reason, intro of digital publishing might prove to be an immediate solution with low amount of danger for the business. However, the company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to initially gathers the information related to the consumer demand, the possible markets, the federal government policies and the information related to the rivals presented in the market. After that, the company should decide one potential segment for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' products. After all the steps above the company should opt for the initial offering. If the initial offering proves a success, the company must opt for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a threat to the company's long term existence, however the circumstance can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
