The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Solution and Analysis
Introduction
The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing information and communication services. Significant service sectors of the company consist of; books, regulars, consultancy and circulation. The company has a vast product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Solution has ended up being a specialized info provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Analysis in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement 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 situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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
The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help has particular strengths that can be utilized to lower the risks, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the company to consider several development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase constraints for the business in executing its advancement program. The weak points of The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help also, however the development might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has posed certain hazards to The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market together with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. The general financial efficiency of the business might be evaluated by using the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help is growing and the company is rather effective in drawing in a a great deal of customers at a prospective cost.
In addition to it, the 2nd chart which shows the yearly development in the The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help overall assets, shows that the business is quite effective in including value to its properties through its incomes. The development in assets shows that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis concerning the distribution of total revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could 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 company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of customers of the The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help consists of the issues of environmental communities 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 ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the documents provided in the virtual libraries on particular websites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help consist of the providers of the paper for releasing documents. 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.
Negotiating 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 marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same duration, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sections, with a significant concentrate on academic publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Dojima Rice Market And The Origins Of Futures Trading 2 Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential 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 using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an instant solution to avoid the declining industry development. For that reason, introduction of digital publishing might prove to be an instant service with low quantity of danger for the business. The company could also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must initially collects the data related to the customer need, the possible markets, the federal government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a threat to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
