Western Assets Arbitrage Case Study Solution and Analysis
Introduction
Western Assets Arbitrage Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Western Assets Arbitrage Case Study Help in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 capabilities of the business could be utilized 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
Western Assets Arbitrage Case Study Help has particular strengths that can be utilized to decrease the threats, overcome the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Western Assets Arbitrage Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide 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.
• Huge product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position allows the business to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Western Assets Arbitrage Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, impacting Western Assets Arbitrage Case Study Help too, but the development could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has positioned particular threats to Western Assets Arbitrage Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Western Assets Arbitrage Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be computed. However, the general financial efficiency of the business could be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Western Assets Arbitrage Case Study Solution is growing and the business is quite effective in bring in a a great deal of customers at a potential cost.
In addition to it, the 2nd graph which shows the yearly development in the Western Assets Arbitrage Case Study Analysis overall assets, reveals that the company is quite effective in including value to its properties through its revenues. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the distribution of total earnings of the business. Major 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 business might move towards other service sections with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. 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 frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income 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.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful products etc. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the Western Assets Arbitrage Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Western Assets Arbitrage Case Study Help includes the concerns of environmental neighborhoods 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the digital libraries on certain websites. The changing customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Western Assets Arbitrage Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Western Assets Arbitrage Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Western Assets Arbitrage Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate solution to avoid the decreasing market development. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the consumer need, the potential markets, the government policies and the data 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 method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, but the situation can be managed by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
