What Happened At Citigroup B 2 Case Study Solution and Analysis
Introduction
What Happened At Citigroup B 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in general and What Happened At Citigroup B 2 Case Study Solution in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change 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 important experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
What Happened At Citigroup B 2 Case Study Help has particular strengths that can be used to minimize the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of What Happened At Citigroup B 2 Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position enables the business to consider several advancement opportunities without any fear 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 advancement program. The weaknesses of What Happened At Citigroup B 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company 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 specific growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting What Happened At Citigroup B 2 Case Study Analysis also, however the growth might be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has postured particular dangers to What Happened At Citigroup B 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of What Happened At Citigroup B 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be calculated. The overall financial performance of the business could be examined by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of What Happened At Citigroup B 2 Case Study Analysis is growing and the company is quite effective in drawing in a large number of consumers at a prospective price.
Together with it, the second chart which shows the annual development in the What Happened At Citigroup B 2 Case Study Help overall possessions, reveals that the business is quite effective in adding worth to its possessions through its revenues. The growth in properties reveals that the total value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis concerning the circulation of overall profits of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the company 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 considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces impacting What Happened At Citigroup B 2 Case Study Solution organisation are high. The 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 prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting What Happened At Citigroup B 2 Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the What Happened At Citigroup B 2 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of What Happened At Citigroup B 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sectors, with a significant focus on instructional publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of What Happened At Citigroup B 2 Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as What Happened At Citigroup B 2 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
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 brand-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 competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing industry growth. For that reason, intro of digital publishing could prove to be an instant option with low amount of risk for the business. Nevertheless, the company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the information related to the customer need, the prospective markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, showing a danger to the company's long term presence, but the situation can be managed by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
