The Real Estate Business And Banking Case Study Solution and Analysis
Introduction
The Real Estate Business And Banking Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, The Real Estate Business And Banking Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 situation? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Real Estate Business And Banking Case Study Help has certain strengths that can be used to minimize the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Real Estate Business And Banking Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its clients.
• Strong financial position enables the business to consider a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase constraints for the business in executing its advancement program. The weaknesses of The Real Estate Business And Banking Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting The Real Estate Business And Banking Case Study Analysis as well, however the growth could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has posed certain dangers to The Real Estate Business And Banking Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The Real Estate Business And Banking Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual total earnings of The Real Estate Business And Banking Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in attracting a large number of clients at a potential cost.
Along with it, the second graph which reveals the yearly development in the The Real Estate Business And Banking Case Study Solution overall assets, reveals that the business is rather effective in including worth to its possessions through its incomes. The development in possessions reveals that the total worth of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis regarding the distribution of total revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting The Real Estate Business And Banking Case Study Help service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products and so on. China has the highest population worldwide with a high population development, revealing the increasing number of customers of the The Real Estate Business And Banking Case Study Help. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The Real Estate Business And Banking Case Study Help includes the issues of ecological neighborhoods over the use 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
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 offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the virtual libraries on particular websites. The altering customer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Real Estate Business And Banking Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier 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 market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Real Estate Business And Banking Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks second and third in different market segments, with a major focus on academic publications. CIP serves as a hazard 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 Real Estate Business And Banking Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as The Real Estate Business And Banking Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate 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 items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing market growth. The business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to first collects the information associated with the consumer demand, the prospective markets, the government guidelines and the data associated with the rivals presented in the market. After that, the company should choose one potential sector for its preliminary offering. It needs to gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business need to go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a danger to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
