Steven Carpenter At Cake Financial 2 Case Study Solution and Analysis
Introduction
Steven Carpenter At Cake Financial 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Steven Carpenter At Cake Financial 2 Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns 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 business could be utilized 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
Steven Carpenter At Cake Financial 2 Case Study Help has specific strengths that can be made use of to decrease the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Steven Carpenter At Cake Financial 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong financial position enables the business to consider numerous advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Steven Carpenter At Cake Financial 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, affecting Steven Carpenter At Cake Financial 2 Case Study Help too, but the growth could be revived by availing particular chances provided in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually presented particular threats to Steven Carpenter At Cake Financial 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Steven Carpenter At Cake Financial 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. Nevertheless, the general monetary efficiency of the company might be evaluated by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Steven Carpenter At Cake Financial 2 Case Study Help is growing and the company is rather efficient in attracting a large number of clients at a prospective rate.
In addition to it, the 2nd chart which shows the annual growth in the Steven Carpenter At Cake Financial 2 Case Study Analysis total assets, reveals that the business is rather effective in adding value to its properties through its earnings. The growth in possessions reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the offered data might be the analysis relating to the distribution of total incomes of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces impacting Steven Carpenter At Cake Financial 2 Case Study Help company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative products and so on. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Steven Carpenter At Cake Financial 2 Case Study Help. However, the customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Steven Carpenter At Cake Financial 2 Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers 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 also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Steven Carpenter At Cake Financial 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Steven Carpenter At Cake Financial 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Steven Carpenter At Cake Financial 2 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual 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 Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• 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 utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the declining industry growth. Introduction of digital publishing could show to be an instant option with low amount of risk for the company. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially collects the information associated with the consumer demand, the potential markets, the government guidelines and the data associated with the rivals presented in the market. After that, the company should choose one possible section for its initial offering. It must collect research study that how it might separate its digital publishing from the existing rivals' items. After all the actions above the company must choose the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a danger to the business's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
