Victory Bank Limited A 2 Case Study Solution and Analysis
Intro
Victory Bank Limited A 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Victory Bank Limited A 2 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement 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 pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Victory Bank Limited A 2 Case Study Solution has certain 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 Victory Bank Limited A 2 Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position enables the company to think about several advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Victory Bank Limited A 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Victory Bank Limited A 2 Case Study Analysis as well, but the growth could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has presented certain threats to Victory Bank Limited A 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Victory Bank Limited A 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market together with existence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be computed. Nevertheless, the general monetary performance of the company might be examined by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Victory Bank Limited A 2 Case Study Solution is growing and the company is rather efficient in bring in a a great deal of customers at a potential price.
Together with it, the second graph which shows the yearly development in the Victory Bank Limited A 2 Case Study Solution overall properties, shows that the business is quite effective in including worth to its assets through its profits. The development in properties reveals that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis relating to 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 displayed in the Case Appendix V. The business could move towards other company segments with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the performance of the company and the current 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 effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Victory Bank Limited A 2 Case Study Help business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Victory Bank Limited A 2 Case Study Solution 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 non reusable and the ink used while publishing must 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 Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number 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 likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Victory Bank Limited A 2 Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Victory Bank Limited A 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Victory Bank Limited A 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 organisation segments to the new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant service to avoid the decreasing industry development. The business could also 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 company must initially collects the data related to the consumer demand, the possible markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a danger to the company's long term existence, however the scenario can be controlled by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
