Windward Investment Management 2 Case Study Solution and Analysis
Introduction
Windward Investment Management 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering info, processing details and interaction services. Significant business sections of the company consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports and so on. Windward Investment Management 2 Case Study Solution has ended up being a specialized details supplier and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Windward Investment Management 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several questions 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
Windward Investment Management 2 Case Study Help has certain strengths that can be used to reduce the threats, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Windward Investment Management 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong financial position permits the company to think about a number of development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase restraints for the company in implementing its development program. The weaknesses of Windward Investment Management 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods 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 prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Windward Investment Management 2 Case Study Analysis also, but the development could be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed certain dangers to Windward Investment Management 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Windward Investment Management 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 threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market along with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall revenues of Windward Investment Management 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather effective in attracting a large number of clients at a potential cost.
Together with it, the 2nd graph which reveals the yearly growth in the Windward Investment Management 2 Case Study Solution overall possessions, shows that the business is rather efficient in adding value to its assets through its earnings. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given information might be the analysis regarding the circulation of total profits of the business. 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 company might move towards other organisation sectors with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Windward Investment Management 2 Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall organisation at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading useful products and so on. China has the highest population in the world with a high population development, revealing the increasing variety of customers of the Windward Investment Management 2 Case Study Solution. However, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Windward Investment Management 2 Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the files presented in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Windward Investment Management 2 Case Study Solution consist of the suppliers of the paper for publishing documents. 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 Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Windward Investment Management 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a significant concentrate on educational publications. CIP acts as a threat 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 Windward Investment Management 2 Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Windward Investment Management 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant option to prevent the decreasing market development. Introduction of digital publishing could show to be an immediate solution with low amount of risk for the company. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to first gathers the information related to the customer demand, the potential markets, the federal government guidelines and the data related to the competitors presented in the market. After that, the company must decide one potential segment for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing rivals' products. After all the actions above the company need to opt for the preliminary offering. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, showing a risk to the company's long term presence, however the circumstance can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
