The Market For Consumer Finance Case Study Solution and Analysis
Intro
The Market For Consumer Finance Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and The Market For Consumer Finance Case Study Help in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement 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 situation? Do the long important experience, technical resources and the abilities of the business could be made use of 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 Market For Consumer Finance Case Study Help has certain strengths that can be made use of to decrease the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Market For Consumer Finance Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the business to consider several advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which might increase restrictions for the company in implementing its development program. The weak points of The Market For Consumer Finance Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting The Market For Consumer Finance Case Study Help too, but the development could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has presented specific risks to The Market For Consumer Finance Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The Market For Consumer Finance Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be determined. The overall financial efficiency of the business might be analyzed by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The Market For Consumer Finance Case Study Solution is growing and the business is rather efficient in attracting a large number of clients at a potential cost.
Together with it, the second graph which shows the annual development in the The Market For Consumer Finance Case Study Analysis overall properties, reveals that the business is rather effective in adding worth to its possessions through its profits. The development in properties shows that the total worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis regarding the circulation of total revenues of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting The Market For Consumer Finance Case Study Help organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the The Market For Consumer Finance Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies related to the import of books impact the total organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out helpful materials and so on. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the The Market For Consumer Finance Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The Market For Consumer Finance Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Market For Consumer Finance Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Market For Consumer Finance Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as The Market For Consumer Finance Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to avoid the declining industry development. For that reason, introduction of digital publishing could prove to be an instant option with low amount of risk for the business. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must first gathers the information related to the customer demand, the possible markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a threat to the business's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
