The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Solution and Analysis
Intro
The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing info and interaction services. Significant service sections of the company consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports etc. The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis has ended up being a specialized information company and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns 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 business could be made use of 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 Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Solution has specific strengths that can be used to decrease the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the company to consider several advancement opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its development program. The weak points of The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Help too, however the growth might be revived by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has postured certain risks to The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual overall incomes of The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather efficient in attracting a large number of consumers at a possible cost.
Along with it, the 2nd graph which reveals the yearly development in the The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis total properties, reveals that the business is rather effective in including worth to its properties through its profits. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis relating to the circulation of total revenues of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect 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 Promotion Department of the Communist Party of China. It could be said that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis in specific includesthe costs of paper, the earnings 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. Together with it, the economic policies connected to the import of books impact the total business at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of customers of the The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Solution consists of the issues of environmental communities 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 must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal 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 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the hazard 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 Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely 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. Major rivals of The Tip Of The Iceberg Jp Morgan And Bear Stearns A Chinese Version Case Study Solution 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).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 service segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an instant solution to avoid the decreasing market growth. For that reason, introduction of digital publishing could prove to be an immediate solution with low quantity of risk for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should initially gathers the data related to the customer need, the prospective markets, the federal government guidelines and the data related to the competitors provided in the market. If the initial offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a threat to the business's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
