Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution and Analysis
Introduction
Symantec Corporation Convertible Notes With Call Spread 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing details and communication services. Major organisation sections of the business include; books, regulars, consultancy and circulation. The business has a large item portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. Symantec Corporation Convertible Notes With Call Spread 2 Case Study Analysis has actually ended up being a specialized information supplier and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of 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 capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution has certain strengths that can be utilized to minimize the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Symantec Corporation Convertible Notes With Call Spread 2 Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the company to consider numerous development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Symantec Corporation Convertible Notes With Call Spread 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Symantec Corporation Convertible Notes With Call Spread 2 Case Study Help as well, but the growth might be restored by availing specific chances presented in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has postured particular risks to Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Symantec Corporation Convertible Notes With Call Spread 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. The total financial efficiency of the company could be examined by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution is growing and the company is rather effective in bring in a large number of consumers at a possible price.
In addition to it, the second graph which shows the yearly growth in the Symantec Corporation Convertible Notes With Call Spread 2 Case Study Analysis overall properties, shows that the company is quite effective in adding value to its assets through its revenues. The development in possessions shows that the total value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the circulation of overall incomes of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the company and the current 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 frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
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 fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Symantec Corporation Convertible Notes With Call Spread 2 Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used 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 relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sections, with a significant focus on academic publications. CIP serves 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 might wean the market share of Symantec Corporation Convertible Notes With Call Spread 2 Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Symantec Corporation Convertible Notes With Call Spread 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk 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 product 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 organisation segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant option to avoid the decreasing industry growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business ought to first collects the information related to the consumer demand, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a threat to the company's long term existence, but the situation can be managed by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
