What Happened At Citigroup A 2 Case Study Solution and Analysis
Introduction
What Happened At Citigroup A 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing info and communication services. Significant business segments of the business consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major products include books, regulars, online media, exhibits, research study reports etc. What Happened At Citigroup A 2 Case Study Solution has become a specialized details supplier and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, What Happened At Citigroup A 2 Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
What Happened At Citigroup A 2 Case Study Solution has particular strengths that can be used to lower the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of What Happened At Citigroup A 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position enables the business to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of What Happened At Citigroup A 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, impacting What Happened At Citigroup A 2 Case Study Solution also, however the growth could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has postured specific threats to What Happened At Citigroup A 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of What Happened At Citigroup A 2 Case Study Solution due to the consumer shift towards virtual 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 get a strong customer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. The overall financial efficiency of the business could be analyzed by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of What Happened At Citigroup A 2 Case Study Solution is growing and the company is rather efficient in drawing in a a great deal of customers at a potential rate.
Along with it, the second graph which reveals the yearly growth in the What Happened At Citigroup A 2 Case Study Help total assets, reveals that the business is rather efficient in adding worth to its possessions through its profits. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis regarding the circulation of overall incomes of the company. Major part of the incomes 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 sections with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could 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 extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing might lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting What Happened At Citigroup A 2 Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing industry 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 Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the What Happened At Citigroup A 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of What Happened At Citigroup A 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks third and second in various market segments, with a significant concentrate on instructional publications. CIP functions as a hazard 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 What Happened At Citigroup A 2 Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as What Happened At Citigroup A 2 Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the declining industry development. The company might 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 ought to first gathers the data related to the customer need, the potential markets, the federal government policies and the information connected to the competitors provided in the market. After that, the business should decide one possible sector for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing rivals' items. After all the steps above the business must opt for the initial offering. If the initial offering proves a success, the company ought to go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a risk to the business's long term existence, but the situation can be managed by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
