The Search For Property Institutional Investment In Real Estate 2 Case Study Solution and Analysis
Introduction
The Search For Property Institutional Investment In Real Estate 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in basic and The Search For Property Institutional Investment In Real Estate 2 Case Study Solution in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Search For Property Institutional Investment In Real Estate 2 Case Study Help has particular strengths that can be used to decrease the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Search For Property Institutional Investment In Real Estate 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position enables the business to consider a number of advancement opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of The Search For Property Institutional Investment In Real Estate 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, affecting The Search For Property Institutional Investment In Real Estate 2 Case Study Analysis as well, but the growth might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has presented certain hazards to The Search For Property Institutional Investment In Real Estate 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of The Search For Property Institutional Investment In Real Estate 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly overall earnings of The Search For Property Institutional Investment In Real Estate 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is rather effective in bring in a big number of clients at a possible price.
Together with it, the second chart which shows the yearly development in the The Search For Property Institutional Investment In Real Estate 2 Case Study Help total assets, reveals that the business is rather effective in adding value to its properties through its revenues. The development in possessions shows that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis concerning the circulation of overall incomes of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind 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. Therefore, it could be said that the general political forces affecting The Search For Property Institutional Investment In Real Estate 2 Case Study Help business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting 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 country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Search For Property Institutional Investment In Real Estate 2 Case Study Solution 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 used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market 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 big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents presented in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Search For Property Institutional Investment In Real Estate 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Search For Property Institutional Investment In Real Estate 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as The Search For Property Institutional Investment In Real Estate 2 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger 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 brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the decreasing market development. Therefore, introduction of digital publishing could show to be an instant service with low amount of danger for the business. Nevertheless, the company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information related to the customer need, the potential markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a hazard to the company's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company could consider 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 brand-new markets.
