Value Investing And Human Behavior Case Study Solution and Analysis
Intro
Value Investing And Human Behavior Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing info and interaction services. Major company segments of the company include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Value Investing And Human Behavior Case Study Help has become a specialized details service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Value Investing And Human Behavior Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement 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 situation? Do the long valuable experience, technical resources and the abilities of the company 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
Value Investing And Human Behavior Case Study Analysis has specific strengths that can be utilized to minimize the hazards, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Value Investing And Human Behavior Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position allows the business to consider a number of development chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Value Investing And Human Behavior Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Value Investing And Human Behavior Case Study Solution as well, however the growth could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned specific threats to Value Investing And Human Behavior Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Value Investing And Human Behavior 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 hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry together with existence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be determined. The total monetary efficiency of the business could be examined by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Value Investing And Human Behavior Case Study Help is growing and the business is rather efficient in bring in a a great deal of clients at a possible price.
Along with it, the second graph which shows the yearly development in the Value Investing And Human Behavior Case Study Analysis total properties, shows that the business is rather efficient in adding worth to its properties through its revenues. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis relating to the distribution of total revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset 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. For that reason, it could be stated that the general political forces affecting Value Investing And Human Behavior Case Study Analysis business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Value Investing And Human Behavior Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books impact the total business at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful 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 Value Investing And Human Behavior Case Study Solution. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Value Investing And Human Behavior Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence 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. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Value Investing And Human Behavior Case Study Help include the suppliers of the paper for releasing documents. 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 Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number 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 industry 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 Value Investing And Human Behavior Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Value Investing And Human Behavior Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use 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 current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition 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 need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an instant solution to prevent the decreasing market development. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must initially collects the data related to the customer need, the prospective markets, the federal government guidelines and the information 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 company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a hazard to the business's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
