What Happened At Citigroup B Case Study Solution and Analysis
Intro
What Happened At Citigroup B Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and What Happened At Citigroup B Case Study Solution in specific. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue 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 Case Study Analysis has particular strengths that can be utilized to lower the dangers, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of What Happened At Citigroup B Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position permits the business to think about several advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase constraints for the company in executing its advancement program. The weak points of What Happened At Citigroup B Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting What Happened At Citigroup B Case Study Help too, however the growth could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has posed particular threats to What Happened At Citigroup B Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of What Happened At Citigroup B Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be determined. The overall financial efficiency of the business might be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of What Happened At Citigroup B Case Study Solution is growing and the business is rather efficient in attracting a a great deal of clients at a potential price.
In addition to it, the second graph which reveals the annual growth in the What Happened At Citigroup B Case Study Help overall properties, reveals that the company is rather efficient in including worth to its possessions through its incomes. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis regarding the circulation of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting What Happened At Citigroup B Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the What Happened At Citigroup B Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books impact the total organisation at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the What Happened At Citigroup B Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting What Happened At Citigroup B Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the digital libraries on certain websites. The altering consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the What Happened At Citigroup B Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of What Happened At Citigroup B Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 also established in the same period as What Happened At Citigroup B Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an immediate option to prevent the declining market development. Therefore, intro of digital publishing could prove to be an immediate service with low quantity of risk for the company. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially gathers the information connected to the consumer demand, the possible markets, the government regulations and the data connected to the rivals presented in the market. After that, the company ought to choose one prospective section for its preliminary offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' items. The actions above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
