The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Solution and Analysis
Introduction
The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business 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 Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Help has certain strengths that can be utilized to reduce the dangers, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong monetary position permits the company to think about a number of advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase restraints for the company in executing its development program. The weak points of The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, 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 growth. It should propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, affecting The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Analysis as well, but the growth might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned specific dangers to The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be computed. However, the overall monetary efficiency of the business might be examined by using the graphs given up the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Solution is growing and the company is rather efficient in attracting a large number of consumers at a potential cost.
In addition to it, the second chart which shows the yearly development in the The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Help overall assets, shows that the company is rather effective in adding worth to its assets through its profits. The growth in properties shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the given data might be the analysis concerning the circulation of overall incomes of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful materials and so on. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Analysis includes the concerns of environmental 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 used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the released documents is the files provided in the virtual libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Financial Crisis Of 2007 2009 The Road To Systemic Risk 2 Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate service to avoid the declining industry development. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company needs to initially gathers the data related to the consumer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term presence, but the scenario can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
