The First Global Financial Crisis Of The 21st Century 2 Case Study Solution and Analysis
Intro
The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and The First Global Financial Crisis Of The 21st Century 2 Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The First Global Financial Crisis Of The 21st Century 2 Case Study Solution has specific strengths that can be utilized to minimize the threats, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The First Global Financial Crisis Of The 21st Century 2 Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong financial position enables the company to consider a number of advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of The First Global Financial Crisis Of The 21st Century 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis as well, however the growth could be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer 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 utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has presented specific hazards to The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be calculated. Nevertheless, the overall monetary efficiency of the business could be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of The First Global Financial Crisis Of The 21st Century 2 Case Study Help is growing and the company is rather efficient in bring in a a great deal of consumers at a potential price.
In addition to it, the 2nd graph which reveals the annual growth in the The First Global Financial Crisis Of The 21st Century 2 Case Study Help total properties, shows that the company is quite efficient in including value to its possessions through its profits. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the distribution of overall profits of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the general business at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative materials and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of customers of the The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis. However, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the digital libraries on particular sites. The changing customer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The First Global Financial Crisis Of The 21st Century 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal 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 industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The First Global Financial Crisis Of The 21st Century 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a significant concentrate on educational publications. CIP acts as a risk 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 First Global Financial Crisis Of The 21st Century 2 Case Study Help 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 company scale. It is likewise among the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining industry development. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should initially collects the information related to the customer demand, the prospective markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the business must 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 given that 2008, showing a hazard to the business's long term existence, however the scenario can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
