Trading Simulation Case Study Solution and Analysis
Intro
Trading Simulation Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing information and interaction services. Major service sections of the company include; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant products include books, periodicals, online media, exhibits, research study reports etc. Trading Simulation Case Study Solution has become a specialized info service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and Trading Simulation Case Study Help in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Trading Simulation Case Study Solution has particular strengths that can be utilized to minimize the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Trading Simulation Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Trading Simulation Case Study Help are offered 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 highly relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Trading Simulation Case Study Analysis as well, however the development might be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually presented particular risks to Trading Simulation Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Trading Simulation Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry together with existence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly total earnings of Trading Simulation Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in attracting a large number of clients at a prospective cost.
In addition to it, the second graph which reveals the yearly growth in the Trading Simulation Case Study Help overall properties, shows that the business is quite effective in including value to its possessions through its revenues. The development in properties shows that the overall worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the distribution of total earnings of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the performance of the company and the recent trends 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 might have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be said that the total political forces impacting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative products and so on. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Trading Simulation Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Trading Simulation Case Study Solution consists of the issues of environmental neighborhoods 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Trading Simulation Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Trading Simulation Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Trading Simulation Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an instant option to prevent the decreasing market growth. Introduction of digital publishing could show to be an instant option with low amount of risk for the business. 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 item portfolio, the company needs to initially collects the data related to the customer demand, the possible markets, the government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a threat to the business's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
