U S Subprime Mortgage Crisis Policy Reactions B Case Study Solution and Analysis
Intro
U S Subprime Mortgage Crisis Policy Reactions B Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing info and communication services. Major business sectors of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major products include books, regulars, online media, exhibits, research reports etc. U S Subprime Mortgage Crisis Policy Reactions B Case Study Analysis has actually ended up being a specialized details company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing market in basic and U S Subprime Mortgage Crisis Policy Reactions B Case Study Help in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
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 scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
U S Subprime Mortgage Crisis Policy Reactions B Case Study Solution has specific strengths that can be used to reduce the threats, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of U S Subprime Mortgage Crisis Policy Reactions B Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position enables the company to consider several development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of U S Subprime Mortgage Crisis Policy Reactions B Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods 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 prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting U S Subprime Mortgage Crisis Policy Reactions B Case Study Analysis as well, however the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has postured specific dangers to U S Subprime Mortgage Crisis Policy Reactions B Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of U S Subprime Mortgage Crisis Policy Reactions B 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 rivals can acquire a strong consumer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. Nevertheless, the overall financial performance of the company could be evaluated by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of U S Subprime Mortgage Crisis Policy Reactions B Case Study Analysis is growing and the company is rather effective in attracting a large number of clients at a possible rate.
Together with it, the 2nd graph which shows the yearly growth in the U S Subprime Mortgage Crisis Policy Reactions B Case Study Solution total properties, shows that the business is quite effective in adding worth to its assets through its earnings. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis regarding the distribution of total profits of the business. Huge part of the profits of CMP originates 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 development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting U S Subprime Mortgage Crisis Policy Reactions B Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the U S Subprime Mortgage Crisis Policy Reactions B Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest 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 purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of U S Subprime Mortgage Crisis Policy Reactions B Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks second and third in different market segments, with a significant concentrate on educational publications. CIP serves as a risk 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 U S Subprime Mortgage Crisis Policy Reactions B Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the decreasing market development. The business might also 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 company must initially gathers the data related to the customer need, the potential markets, the government regulations and the data related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a hazard to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
