The Jkj Pension Fund Case Study Solution and Analysis
Introduction
The Jkj Pension Fund Case Study Help 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 thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and The Jkj Pension Fund Case Study Solution in specific. These elements include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change 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 valuable experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Jkj Pension Fund Case Study Help has particular strengths that can be utilized to minimize the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Jkj Pension Fund Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position enables the business to think about a number of development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restrictions for the company in executing its development program. The weaknesses of The Jkj Pension Fund Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting The Jkj Pension Fund Case Study Help as well, but the development might be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has posed specific hazards to The Jkj Pension Fund Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of The Jkj Pension Fund Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain methods like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total earnings of The Jkj Pension Fund Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in attracting a big number of customers at a prospective cost.
Along with it, the second graph which shows the yearly development in the The Jkj Pension Fund Case Study Help overall properties, reveals that the business is rather efficient in including worth to its properties through its incomes. The development in assets shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis relating to the circulation of overall earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the overall political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative products and so on. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the The Jkj Pension Fund Case Study Analysis. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting The Jkj Pension Fund Case Study Help includes the concerns of ecological neighborhoods over the use 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 needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the files provided in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Jkj Pension Fund Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Jkj Pension Fund Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sections, with a major concentrate on academic publications. CIP functions as a risk 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 market share of The Jkj Pension Fund Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 sections 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 business require an instant solution to avoid the declining industry growth. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the data connected to the consumer demand, the possible markets, the government regulations and the information associated with the rivals provided in the market. After that, the company needs to decide one possible sector for its preliminary offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the business should go for the preliminary offering. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, revealing a hazard to the business's long term existence, but the situation can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
