The Ipo Of Agricultural Bank Of China Abc B Case Study Solution and Analysis
Intro
The Ipo Of Agricultural Bank Of China Abc B Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Ipo Of Agricultural Bank Of China Abc B Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development 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 B Case Study Help has specific strengths that can be utilized to lower the hazards, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Ipo Of Agricultural Bank Of China Abc B 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 previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position allows the company to think about numerous development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which could increase restraints for the business in implementing its development program. The weak points of The Ipo Of Agricultural Bank Of China Abc B Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard 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 specific expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting The Ipo Of Agricultural Bank Of China Abc B Case Study Solution as well, but the development might be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually postured specific threats to The Ipo Of Agricultural Bank Of China Abc B Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Ipo Of Agricultural Bank Of China Abc B Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total revenues of The Ipo Of Agricultural Bank Of China Abc B Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is quite efficient in bring in a large number of customers at a potential cost.
Along with it, the second graph which reveals the annual growth in the The Ipo Of Agricultural Bank Of China Abc B Case Study Analysis overall assets, reveals that the business is rather efficient in including value to its assets through its incomes. The growth in properties shows that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis regarding the circulation of total profits of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could 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 company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting The Ipo Of Agricultural Bank Of China Abc B Case Study Analysis service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Ipo Of Agricultural Bank Of China Abc B Case Study Help includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation 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 utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the threat 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 Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Ipo Of Agricultural Bank Of China Abc B Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Ipo Of Agricultural Bank Of China Abc B Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP publishes similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in different market sections, with a major concentrate on educational publications. CIP functions as a threat 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 Ipo Of Agricultural Bank Of China Abc B Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage 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 existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an instant service to prevent the decreasing industry growth. For that reason, introduction of digital publishing could show to be an instant solution with low amount of danger for the business. Nevertheless, the business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to initially gathers the data related to the consumer demand, the prospective markets, the federal government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a hazard to the business's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
