Washington Mutuals Covered Bonds 2 Case Study Solution and Analysis
Introduction
Washington Mutuals Covered Bonds 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing market in general and Washington Mutuals Covered Bonds 2 Case Study Help in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 circumstance? Do the long valuable experience, technical resources and the abilities 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
Washington Mutuals Covered Bonds 2 Case Study Analysis has specific strengths that can be made use of to minimize the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Washington Mutuals Covered Bonds 2 Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong monetary position enables the company to consider numerous advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase constraints for the business in executing its advancement program. The weaknesses of Washington Mutuals Covered Bonds 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Washington Mutuals Covered Bonds 2 Case Study Solution too, but the development might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned certain threats to Washington Mutuals Covered Bonds 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Washington Mutuals Covered Bonds 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of Washington Mutuals Covered Bonds 2 Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is rather effective in drawing in a big number of clients at a possible rate.
In addition to it, the 2nd graph which shows the yearly development in the Washington Mutuals Covered Bonds 2 Case Study Solution overall properties, reveals that the business is quite effective in adding value to its possessions through its earnings. The development in possessions shows that the total value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered information might be the analysis regarding the circulation of total earnings 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 company segments with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting Washington Mutuals Covered Bonds 2 Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products etc. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Washington Mutuals Covered Bonds 2 Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Washington Mutuals Covered Bonds 2 Case Study Help includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the virtual libraries on certain sites. The altering consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Washington Mutuals Covered Bonds 2 Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Washington Mutuals Covered Bonds 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Washington Mutuals Covered Bonds 2 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering 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 expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an immediate option to prevent the decreasing market growth. Therefore, introduction of digital publishing might prove to be an instant service with low quantity of danger for the company. 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 needs to initially gathers the data related to the consumer demand, the potential markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a threat to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
