The Rise And Fall Of Aig 3 Case Study Solution and Analysis
Intro
The Rise And Fall Of Aig 3 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing details and interaction services. Major service sectors of the company include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports etc. The Rise And Fall Of Aig 3 Case Study Help has actually become a specialized information supplier and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, The Rise And Fall Of Aig 3 Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 important 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 Rise And Fall Of Aig 3 Case Study Solution has particular strengths that can be utilized to lower the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Rise And Fall Of Aig 3 Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position enables the business to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restraints for the business in executing its development program. The weaknesses of The Rise And Fall Of Aig 3 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, affecting The Rise And Fall Of Aig 3 Case Study Solution too, however the growth might be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually presented specific dangers to The Rise And Fall Of Aig 3 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Rise And Fall Of Aig 3 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. However, the general monetary performance of the business could be evaluated by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Rise And Fall Of Aig 3 Case Study Analysis is growing and the business is rather effective in attracting a large number of consumers at a prospective rate.
Together with it, the 2nd graph which reveals the yearly growth in the The Rise And Fall Of Aig 3 Case Study Analysis overall properties, shows that the company is quite effective in including worth to its possessions through its profits. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis concerning the distribution of total earnings of the company. Huge 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 business might move towards other organisation segments with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting The Rise And Fall Of Aig 3 Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to 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 Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the files presented in the virtual libraries on particular sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Rise And Fall Of Aig 3 Case Study Analysis consist of the providers of the paper for publishing 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 Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence 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 rivals of The Rise And Fall Of Aig 3 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in different market sections, with a significant focus on instructional 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 market share of The Rise And Fall Of Aig 3 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• 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 utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to prevent the decreasing market development. For that reason, introduction of digital publishing could prove to be an instant option with low amount of threat for the business. However, the business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should initially gathers the data connected to the consumer demand, the potential markets, the federal government policies and the information connected to the competitors presented in the market. After that, the business must decide one prospective sector for its preliminary offering. It must gather research study that how it could separate its digital publishing from the existing competitors' products. The steps above the business should go for the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a threat to the company's long term existence, however the situation can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
