The Financial Regulatory Environment Case Study Solution and Analysis
Intro
The Financial Regulatory Environment Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, The Financial Regulatory Environment Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change 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 important experience, technical resources and the capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Financial Regulatory Environment Case Study Solution has certain strengths that can be made use of to decrease the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Financial Regulatory Environment Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong financial position permits the company to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase constraints for the business in executing its development program. The weaknesses of The Financial Regulatory Environment Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting The Financial Regulatory Environment Case Study Help as well, but the growth could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has positioned specific hazards to The Financial Regulatory Environment Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of The Financial Regulatory Environment Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be determined. The general financial performance of the business could be examined by utilizing the charts offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of The Financial Regulatory Environment Case Study Solution is growing and the business is rather effective in bring in a a great deal of customers at a possible cost.
Along with it, the second chart which reveals the yearly growth in the The Financial Regulatory Environment Case Study Analysis total possessions, shows that the business is quite effective in including value to its assets through its earnings. The development in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis concerning the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting The Financial Regulatory Environment Case Study Help company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the The Financial Regulatory Environment Case Study Solution in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall business at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out useful products etc. China has the highest population worldwide with a high population growth, showing the increasing number of customers of the The Financial Regulatory Environment Case Study Analysis. Nevertheless, the customer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting The Financial Regulatory Environment 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 needed to be disposable and the ink utilized while publishing must not be damaging 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.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files presented in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the danger 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 Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Financial Regulatory Environment Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry 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 prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Financial Regulatory Environment Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a major focus on educational publications. CIP functions 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 marketplace share of The Financial Regulatory Environment Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as The Financial Regulatory Environment Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective 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 utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
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 items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an instant service to avoid the decreasing industry growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of danger for the business. The business 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 needs to initially collects the data related to the consumer need, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
