Volatility For Hedge Funds Case Study Solution and Analysis
Introduction
Volatility For Hedge Funds Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing info and interaction services. Major service sections of the business include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Volatility For Hedge Funds Case Study Solution has become a specialized info company and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Volatility For Hedge Funds Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities 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
Volatility For Hedge Funds Case Study Help has certain strengths that can be utilized to reduce the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Volatility For Hedge Funds Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position permits the business to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase constraints for the business in executing its advancement program. The weaknesses of Volatility For Hedge Funds Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Volatility For Hedge Funds Case Study Solution as well, but the growth might be restored by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned particular risks to Volatility For Hedge Funds Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Volatility For Hedge Funds Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the total financial performance of the business might be analyzed by using the graphs given up the case Appendices. It could be examined from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Volatility For Hedge Funds Case Study Solution is growing and the company is quite effective in drawing in a a great deal of consumers at a prospective price.
Along with it, the 2nd graph which reveals the annual growth in the Volatility For Hedge Funds Case Study Solution overall properties, reveals that the business is rather effective in including worth to its possessions through its revenues. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis regarding the distribution of overall profits of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading helpful products and so on. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the Volatility For Hedge Funds Case Study Solution. Nevertheless, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Volatility For Hedge Funds Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of alternative for the industry.
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 etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Volatility For Hedge Funds Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Volatility For Hedge Funds Case Study Analysis include;.
• 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 present market scenario.
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 terms of business 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: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation 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 business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing industry development. Introduction of digital publishing could prove to be an instant solution with low amount of danger for the company. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first gathers the data connected to the customer need, the possible markets, the federal government regulations and the information related to the rivals presented in the market. After that, the business needs to decide one possible sector for its initial offering. It should collect research study that how it might separate its digital publishing from the existing competitors' items. After all the actions above the company should choose the preliminary offering. If the initial offering proves a success, the company must opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a risk to the company's long term existence, but the situation can be managed by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
