Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Solution and Analysis
Intro
Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Analysis in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Solution has certain strengths that can be used to minimize the threats, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position permits the business to think about several advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Analysis as well, however the growth could be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured particular risks to Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. However, the total financial efficiency of the company might be examined by utilizing the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Solution is growing and the business is rather effective in attracting a large number of customers at a prospective rate.
In addition to it, the second graph which reveals the yearly development in the Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Analysis overall assets, shows that the business is quite effective in adding worth to its properties through its profits. The development in assets shows that the total worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the provided information might be the analysis regarding the circulation of overall revenues of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces impacting Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence 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, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and second in various market sectors, with a significant focus on educational publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Stand By Me Friends Relationship Banking And Financial Governance In Asia Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an immediate option to prevent the declining market development. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term existence, but the scenario can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
