The Financial Detective 2 Case Study Solution and Analysis
Introduction
The Financial Detective 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing details and interaction services. Major business sections of the company consist of; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports and so on. The Financial Detective 2 Case Study Solution has become a specialized details provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, The Financial Detective 2 Case Study Help has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 company 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 Financial Detective 2 Case Study Analysis has specific strengths that can be made use of to decrease the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Financial Detective 2 Case Study Analysis in the publishing market i.e. 60 years allows the business 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.
• Vast item portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong financial position enables the business to consider numerous advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the company in implementing its development program. The weaknesses of The Financial Detective 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting The Financial Detective 2 Case Study Analysis too, but the growth might be restored by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has posed certain dangers to The Financial Detective 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of The Financial Detective 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The overall monetary performance of the business might be examined by utilizing the charts offered in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of The Financial Detective 2 Case Study Solution is growing and the business is quite efficient in drawing in a a great deal of consumers at a possible cost.
Together with it, the second chart which shows the yearly growth in the The Financial Detective 2 Case Study Solution overall assets, shows that the business is rather effective in adding value to its assets through its revenues. The growth in assets reveals that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis relating to the distribution of overall profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting The Financial Detective 2 Case Study Solution company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the The Financial Detective 2 Case Study Analysis 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 combine effect the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the total service at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Financial Detective 2 Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the published files is the files presented in the digital libraries on particular websites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Financial Detective 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Financial Detective 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sections, with a major concentrate on academic publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of The Financial Detective 2 Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value 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 brand-new one can lead the business to lose demand of its products 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 achieve its future advancement. As the choices are shifting towards digital publishing and the business require an immediate service to prevent the declining industry growth. Intro of digital publishing might show to be an instant solution with low amount of risk for the company. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to first gathers the data related to the consumer demand, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, revealing a risk to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
