Steven Carpenter At Cake Financial Case Study Solution and Analysis
Introduction
Steven Carpenter At Cake Financial Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Steven Carpenter At Cake Financial Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Steven Carpenter At Cake Financial Case Study Help has specific strengths that can be utilized to lower the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Steven Carpenter At Cake Financial Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful 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 allows the company to think about several advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of Steven Carpenter At Cake Financial Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business 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 must propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Steven Carpenter At Cake Financial Case Study Analysis as well, however the growth might be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular risks to Steven Carpenter At Cake Financial Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Steven Carpenter At Cake Financial Case Study Help due to the customer shift towards virtual libraries.
• The presence 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 certain methods like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the industry together with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. The total financial efficiency of the company might be examined by utilizing the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Steven Carpenter At Cake Financial Case Study Help is growing and the company is quite efficient in drawing in a large number of clients at a potential cost.
Along with it, the second chart which reveals the annual development in the Steven Carpenter At Cake Financial Case Study Solution overall properties, shows that the company is rather efficient in adding worth to its assets through its incomes. The development in assets shows that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis concerning the circulation of overall incomes of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Steven Carpenter At Cake Financial Case Study Help company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Steven Carpenter At Cake Financial Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the overall company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Steven Carpenter At Cake Financial Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines 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 ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the files provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market 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 marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Steven Carpenter At Cake Financial Case Study Help include the providers of the paper for publishing files. 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 Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Steven Carpenter At Cake Financial Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Steven Carpenter At Cake Financial Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. 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 company should initially collects the data related to the consumer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a threat to the company's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
