Standards And Poors Dow Jones The Index Model At Work Case Study Solution and Analysis
Introduction
Standards And Poors Dow Jones The Index Model At Work Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing information and communication services. Major company sections of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports etc. Standards And Poors Dow Jones The Index Model At Work Case Study Solution has become a specialized information provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Standards And Poors Dow Jones The Index Model At Work Case Study Solution in particular. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities 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
Standards And Poors Dow Jones The Index Model At Work Case Study Solution has specific strengths that can be utilized to lower the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Standards And Poors Dow Jones The Index Model At Work Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position allows the company to consider numerous development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of Standards And Poors Dow Jones The Index Model At Work 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 compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting Standards And Poors Dow Jones The Index Model At Work Case Study Help as well, however the growth might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business might also introduce 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 lower its reliance over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has posed specific hazards to Standards And Poors Dow Jones The Index Model At Work Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Standards And Poors Dow Jones The Index Model At Work Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry along with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the annual total revenues of Standards And Poors Dow Jones The Index Model At Work Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is rather effective in attracting a large number of consumers at a prospective rate.
Together with it, the second graph which shows the yearly development in the Standards And Poors Dow Jones The Index Model At Work Case Study Analysis total possessions, shows that the company is quite effective in including worth to its assets through its revenues. The development in assets reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis regarding the distribution of total profits of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Standards And Poors Dow Jones The Index Model At Work Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total service at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation along with the rise of digital publishing could minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Standards And Poors Dow Jones The Index Model At Work Case Study Help includes the concerns of environmental 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 must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market 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. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Standards And Poors Dow Jones The Index Model At Work Case Study Analysis consist of 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Standards And Poors Dow Jones The Index Model At Work Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major focus on instructional publications. 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 might wean the market share of Standards And Poors Dow Jones The Index Model At Work Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant option to prevent the decreasing industry growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer need, the prospective markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, revealing a hazard to the company's long term presence, however the scenario can be managed by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
