Using Social Media To Report Financial Results Case Study Solution and Analysis
Intro
Using Social Media To Report Financial Results Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and communication services. Significant service sections of the company include; books, regulars, consultancy and circulation. The company has a large product portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Using Social Media To Report Financial Results Case Study Analysis has ended up being a specialized info provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Using Social Media To Report Financial Results Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 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
Using Social Media To Report Financial Results Case Study Help has specific strengths that can be utilized to minimize the dangers, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Using Social Media To Report Financial Results Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong monetary position enables the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of Using Social Media To Report Financial Results Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Using Social Media To Report Financial Results Case Study Solution as well, but the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has actually presented certain threats to Using Social Media To Report Financial Results Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Using Social Media To Report Financial Results Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry together with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total incomes of Using Social Media To Report Financial Results Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is rather effective in attracting a large number of consumers at a potential rate.
Together with it, the 2nd graph which reveals the annual development in the Using Social Media To Report Financial Results Case Study Help total possessions, reveals that the company is rather effective in including value to its assets through its profits. The development in properties shows that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Using Social Media To Report Financial Results Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand 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 must 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 and so on. Enhancement of science and technology together with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Using Social Media To Report Financial Results Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents presented in the digital libraries on particular sites. The altering customer choices towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Using Social Media To Report Financial Results Case Study Help include the suppliers of the paper for releasing files. 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.
Negotiating 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 marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Using Social Media To Report Financial Results Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Using Social Media To Report Financial Results Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the 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 along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an instant service to prevent the decreasing industry development. Therefore, introduction of digital publishing might show to be an instant service with low quantity of threat for the business. However, the company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first collects the data related to the consumer demand, the possible markets, the federal government regulations and the data associated with the rivals provided in the market. After that, the business must choose one possible segment for its preliminary offering. It must collect research study that how it could separate its digital publishing from the existing rivals' products. The steps above the business ought to go for the initial offering. The company needs to go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a danger to the business's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
