The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution and Analysis
Introduction
The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing details and communication services. Major service sectors of the business include; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution has ended up being a specialized information company and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Analysis has particular strengths that can be used to decrease the hazards, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position enables the business to consider numerous development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase restrictions for the company in implementing its development program. The weaknesses of The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing because 2008, impacting The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution too, however the development might be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has positioned particular threats to The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be computed. Nevertheless, the general monetary efficiency of the business might be analyzed by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution is growing and the company is quite efficient in attracting a a great deal of consumers at a prospective rate.
Along with it, the 2nd chart which shows the annual development in the The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Analysis overall possessions, shows that the business is rather effective in adding worth to its properties through its revenues. The development in properties reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the circulation of overall earnings of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies related to the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs 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 people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Volcker Rule Financial Crisis Bailouts And The Need For Financial Regulation Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential 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 existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to first gathers the information connected to the consumer need, the possible markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the company ought to choose one prospective sector for its preliminary offering. It should collect research that how it might differentiate its digital publishing from the existing competitors' items. The steps above the business should go for the initial offering. The company ought to go for the other markets if the initial offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a risk to the business's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
