The Ipo Of Agricultural Bank Of China Abc A Case Study Solution and Analysis
Introduction
The Ipo Of Agricultural Bank Of China Abc A Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, The Ipo Of Agricultural Bank Of China Abc A Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions 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 abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Ipo Of Agricultural Bank Of China Abc A Case Study Solution has certain strengths that can be utilized to minimize the risks, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Ipo Of Agricultural Bank Of China Abc A Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position enables the company to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which could increase restraints for the company in executing its development program. The weaknesses of The Ipo Of Agricultural Bank Of China Abc A Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting The Ipo Of Agricultural Bank Of China Abc A Case Study Help too, however the growth could be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has positioned specific hazards to The Ipo Of Agricultural Bank Of China Abc A Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of The Ipo Of Agricultural Bank Of China Abc A Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market along with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall profits of The Ipo Of Agricultural Bank Of China Abc A Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in drawing in a large number of consumers at a possible rate.
Along with it, the 2nd chart which shows the yearly development in the The Ipo Of Agricultural Bank Of China Abc A Case Study Help overall properties, shows that the business is rather effective in including value to its properties through its revenues. The growth in assets reveals that the total worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given data could be the analysis concerning the circulation of overall incomes of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame 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 Celebration of China. It could be said that the total political forces affecting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products etc. China has the highest population in the world with a high population development, showing the increasing number of customers of the The Ipo Of Agricultural Bank Of China Abc A Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Ipo Of Agricultural Bank Of China Abc A Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized 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. 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 authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the files provided in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market 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. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Ipo Of Agricultural Bank Of China Abc A Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Ipo Of Agricultural Bank Of China Abc A Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks second and 3rd in different market segments, with a significant focus on educational publications. CIP acts as a hazard 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 Ipo Of Agricultural Bank Of China Abc A Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as The Ipo Of Agricultural Bank Of China Abc A Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant option to avoid the declining market growth. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must initially gathers the data related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a threat to the company's long term existence, but the situation can be managed by considering a development 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 entryway in the new markets.
