Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Solution and Analysis
Intro
Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering info, processing information and interaction services. Significant company sections of the company include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Solution has become a specialized info service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Solution in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Help has particular strengths that can be made use of to reduce the risks, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position enables the business to consider a number of development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase constraints for the company in implementing its development program. The weak points of Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis too, however the growth might be restored by availing specific opportunities provided in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has presented certain hazards to Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry along with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather efficient in attracting a big number of consumers at a potential price.
Along with it, the second graph which reveals the yearly development in the Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Help total properties, shows that the business is rather effective in adding value to its properties through its revenues. The development in possessions reveals that the overall worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the company and the current trends 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 could have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might 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.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general 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 large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence 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 competitors of Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 might 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 Wall Street Main Street And A Credit Crunch Thoughts On The Current Financial Crisis 2 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat 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 segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate option to prevent the decreasing market growth. For that reason, intro of digital publishing might show to be an instant solution with low amount of danger for the company. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the data related to the customer demand, the possible markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.