Transparency A Rising Trend In Listed Companies 2 Case Study Solution and Analysis
Introduction
Transparency A Rising Trend In Listed Companies 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing market in general and Transparency A Rising Trend In Listed Companies 2 Case Study Solution in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Transparency A Rising Trend In Listed Companies 2 Case Study Analysis has particular strengths that can be utilized to minimize the threats, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Transparency A Rising Trend In Listed Companies 2 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the company to think about a number of development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Transparency A Rising Trend In Listed Companies 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Transparency A Rising Trend In Listed Companies 2 Case Study Help as well, however the development could be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has actually positioned specific risks to Transparency A Rising Trend In Listed Companies 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Transparency A Rising Trend In Listed Companies 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain methods like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry along with existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual total profits of Transparency A Rising Trend In Listed Companies 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather effective in attracting a big number of clients at a prospective rate.
Together with it, the 2nd graph which reveals the annual growth in the Transparency A Rising Trend In Listed Companies 2 Case Study Help overall possessions, shows that the company is quite effective in adding worth to its possessions through its profits. The growth in assets shows that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis concerning the circulation of total earnings of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces impacting Transparency A Rising Trend In Listed Companies 2 Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
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 satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Transparency A Rising Trend In Listed Companies 2 Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Transparency A Rising Trend In Listed Companies 2 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Transparency A Rising Trend In Listed Companies 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential 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 threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business 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 advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry development. For that reason, intro of digital publishing might show to be an instant option with low quantity of danger for the company. Nevertheless, the business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the information connected to the customer need, the potential markets, the federal government guidelines and the information associated with the competitors presented in the market. After that, the company must decide one possible sector for its preliminary offering. It should gather research that how it might separate its digital publishing from the existing rivals' items. The steps above the business must go for the initial offering. The business should go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
