Stock Manipulation By Chinas Pangang Group Case Study Solution and Analysis
Intro
Stock Manipulation By Chinas Pangang Group Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details company and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Stock Manipulation By Chinas Pangang Group Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation 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 valuable 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
Stock Manipulation By Chinas Pangang Group Case Study Help has certain strengths that can be used to reduce the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Stock Manipulation By Chinas Pangang Group Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing 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 danger and provide high value to its consumers.
• Strong financial position allows the business to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase restraints for the company in executing its development program. The weaknesses of Stock Manipulation By Chinas Pangang Group Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting Stock Manipulation By Chinas Pangang Group Case Study Analysis as well, but the growth might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned certain threats to Stock Manipulation By Chinas Pangang Group Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Stock Manipulation By Chinas Pangang Group Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be calculated. The general financial efficiency of the business could be examined by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Stock Manipulation By Chinas Pangang Group Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of consumers at a potential rate.
In addition to it, the second graph which shows the yearly development in the Stock Manipulation By Chinas Pangang Group Case Study Analysis overall assets, shows that the company is quite efficient in including value to its possessions through its incomes. The development in properties reveals that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided data could be the analysis regarding the distribution of overall revenues of the business. 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 business could move towards other business sectors with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence 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. It might be stated that the general political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Stock Manipulation By Chinas Pangang Group Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books impact the general company at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Stock Manipulation By Chinas Pangang Group Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations 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 Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Stock Manipulation By Chinas Pangang Group Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Stock Manipulation By Chinas Pangang Group Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the decreasing market growth. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first gathers the data connected to the consumer demand, the potential markets, the federal government regulations and the information connected to the rivals presented in the market. After that, the business needs to decide one potential section for its preliminary offering. It needs to collect research that how it could separate its digital publishing from the existing competitors' products. The actions above the business need to go for the preliminary offering. The company must go for the other markets if the initial offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a danger to the business's long term presence, but the circumstance can be controlled by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
