The Fall Of Enron 2 Case Study Solution and Analysis
Introduction
The Fall Of Enron 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering information, processing info and communication services. Significant company sections of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant products include books, regulars, online media, exhibitions, research reports etc. The Fall Of Enron 2 Case Study Analysis has actually become a specialized information provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Fall Of Enron 2 Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns 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 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 Fall Of Enron 2 Case Study Solution has specific strengths that can be used to lower the hazards, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Fall Of Enron 2 Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position allows the company to consider several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase restraints for the company in executing its advancement program. The weak points of The Fall Of Enron 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting The Fall Of Enron 2 Case Study Help too, but the development might be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned particular hazards to The Fall Of Enron 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of The Fall Of Enron 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the general monetary efficiency of the company might be examined by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of The Fall Of Enron 2 Case Study Help is growing and the company is quite efficient in bring in a a great deal of customers at a potential price.
Along with it, the 2nd chart which reveals the yearly growth in the The Fall Of Enron 2 Case Study Help total assets, reveals that the company is rather efficient in adding worth to its possessions through its incomes. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the circulation of overall incomes of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different 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 business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting The Fall Of Enron 2 Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Fall Of Enron 2 Case Study Solution consists of 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 non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to evaluate the attractiveness 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 potential development in the industry tends to attract new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Fall Of Enron 2 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Fall Of Enron 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks second and third in different market sections, with a major concentrate on academic publications. CIP functions as a danger for CMP as it might 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 Fall Of Enron 2 Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the declining industry growth. Intro of digital publishing could prove to be an instant option with low amount of threat for the business. Nevertheless, the company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to first collects the data related to the customer need, the potential markets, the government guidelines and the data connected to the competitors presented in the market. After that, the company ought to choose one possible sector for its preliminary offering. It should collect research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the business should choose the initial offering. If the preliminary offering shows a success, the company needs to choose the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term existence, but the situation can be managed by considering an advancement plan in the future. The business might think about presenting 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.
