Transfer Pricing At Cameco Corporation Case Study Solution and Analysis
Introduction
Transfer Pricing At Cameco Corporation Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing info and communication services. Significant organisation sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports etc. Transfer Pricing At Cameco Corporation Case Study Solution has become a specialized information service provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in general and Transfer Pricing At Cameco Corporation Case Study Help in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Transfer Pricing At Cameco Corporation Case Study Analysis has specific strengths that can be utilized to minimize the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Transfer Pricing At Cameco Corporation Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the business to think about several development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restraints for the company in executing its development program. The weak points of Transfer Pricing At Cameco Corporation Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting Transfer Pricing At Cameco Corporation Case Study Solution as well, however the growth could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned specific threats to Transfer Pricing At Cameco Corporation Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Transfer Pricing At Cameco Corporation Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP might not be determined. The total financial performance of the company could be evaluated by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Transfer Pricing At Cameco Corporation Case Study Solution is growing and the company is quite effective in bring in a large number of consumers at a possible price.
Together with it, the second chart which shows the annual growth in the Transfer Pricing At Cameco Corporation Case Study Help overall properties, shows that the company is quite effective in adding value to its properties through its earnings. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis relating to the distribution of total incomes of the company. Major part of the earnings 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 sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces affecting the performance of the business and the recent 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 influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Transfer Pricing At Cameco Corporation Case Study Help organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Transfer Pricing At Cameco Corporation Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Transfer Pricing At Cameco Corporation Case Study Help consists of the concerns 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 utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence 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, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Transfer Pricing At Cameco Corporation Case Study Help 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 general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market 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 documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Transfer Pricing At Cameco Corporation Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 founded in the same period as Transfer Pricing At Cameco Corporation Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an instant option to prevent the declining industry growth. The business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to initially collects the data related to the customer need, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a danger to the company's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
