The Accounting Case Learning Team 50 Case Study Solution and Analysis
Intro
The Accounting Case Learning Team 50 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, The Accounting Case Learning Team 50 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 made use of 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
The Accounting Case Learning Team 50 Case Study Solution has specific strengths that can be made use of to lower the risks, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The Accounting Case Learning Team 50 Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position allows the company to consider several development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which could increase restraints for the company in executing its advancement program. The weaknesses of The Accounting Case Learning Team 50 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, affecting The Accounting Case Learning Team 50 Case Study Analysis as well, but the development might be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned particular dangers to The Accounting Case Learning Team 50 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of The Accounting Case Learning Team 50 Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual overall profits of The Accounting Case Learning Team 50 Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a big number of consumers at a potential cost.
Along with it, the 2nd graph which shows the annual growth in the The Accounting Case Learning Team 50 Case Study Help overall properties, shows that the business is rather efficient in adding value to its properties through its revenues. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered information might be the analysis relating to the circulation of overall profits of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out informative products and so on. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the The Accounting Case Learning Team 50 Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Accounting Case Learning Team 50 Case Study Solution consists of the concerns of environmental neighborhoods over the use 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 should 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 approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Accounting Case Learning Team 50 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Accounting Case Learning Team 50 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as The Accounting Case Learning Team 50 Case Study Analysis 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: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an instant option to avoid the decreasing market development. Therefore, introduction of digital publishing might prove to be an immediate service with low quantity of danger for the business. 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 product portfolio, the company should first collects the data related to the customer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a risk to the company's long term presence, but the circumstance can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
