Three Common Currency Adjustment Pitfalls Case Study Solution and Analysis
Introduction
Three Common Currency Adjustment Pitfalls Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and interaction services. Major company sections of the company include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. Three Common Currency Adjustment Pitfalls Case Study Solution has become a specialized details company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and Three Common Currency Adjustment Pitfalls Case Study Help in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Three Common Currency Adjustment Pitfalls Case Study Analysis has certain strengths that can be utilized to minimize the risks, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Three Common Currency Adjustment Pitfalls Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the business to consider several development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which could increase constraints for the company in executing its development program. The weaknesses of Three Common Currency Adjustment Pitfalls Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting Three Common Currency Adjustment Pitfalls Case Study Analysis as well, but the development could be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has postured certain risks to Three Common Currency Adjustment Pitfalls Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Three Common Currency Adjustment Pitfalls Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry along with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be calculated. However, the general monetary efficiency of the business might be examined by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Three Common Currency Adjustment Pitfalls Case Study Solution is growing and the business is quite effective in bring in a a great deal of clients at a prospective cost.
Together with it, the 2nd graph which reveals the yearly development in the Three Common Currency Adjustment Pitfalls Case Study Solution overall assets, reveals that the business is rather efficient in adding value to its assets through its revenues. The development in assets shows that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis relating to the circulation of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting Three Common Currency Adjustment Pitfalls Case Study Solution company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Three Common Currency Adjustment Pitfalls Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the general business at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought 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. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Three Common Currency Adjustment Pitfalls Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Three Common Currency Adjustment Pitfalls Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Three Common Currency Adjustment Pitfalls Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage 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 introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its products in the market.
Suggestions
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 suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market development. Therefore, introduction of digital publishing could prove to be an immediate option with low quantity of danger for the company. 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 business ought to initially collects the information related to the consumer need, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a danger to the business's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
