The Southeast Bank Of Texas In The Financial Crisis Case Study Solution and Analysis
Introduction
The Southeast Bank Of Texas In The Financial Crisis Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, The Southeast Bank Of Texas In The Financial Crisis Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth 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 concerns 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 business could be used 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 Southeast Bank Of Texas In The Financial Crisis Case Study Solution has particular strengths that can be made use of to lower the hazards, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Southeast Bank Of Texas In The Financial Crisis Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position allows the company to consider several advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of The Southeast Bank Of Texas In The Financial Crisis Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining because 2008, affecting The Southeast Bank Of Texas In The Financial Crisis Case Study Analysis as well, but the development might be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually presented particular risks to The Southeast Bank Of Texas In The Financial Crisis Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The Southeast Bank Of Texas In The Financial Crisis Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market in addition to 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 calculated. It might be analyzed from the Appendix III that the yearly total incomes of The Southeast Bank Of Texas In The Financial Crisis Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is rather effective in attracting a large number of clients at a possible cost.
In addition to it, the 2nd graph which reveals the yearly development in the The Southeast Bank Of Texas In The Financial Crisis Case Study Help overall assets, reveals that the company is rather effective in adding value to its assets through its revenues. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of overall incomes 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 might move towards other business sectors with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Southeast Bank Of Texas In The Financial Crisis Case Study Help includes the concerns of ecological communities over the usage 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 damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the files provided in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Southeast Bank Of Texas In The Financial Crisis Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Southeast Bank Of Texas In The Financial Crisis Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
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 brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining market growth. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first collects the data related to the consumer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a risk to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
