Windward Investment Management Case Study Solution and Analysis
Intro
Windward Investment Management Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Windward Investment Management Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies 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 numerous 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 business could be used 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
Windward Investment Management Case Study Analysis has certain strengths that can be used to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Windward Investment Management Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the company to think about numerous development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase constraints for the business in executing its development program. The weak points of Windward Investment Management Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, affecting Windward Investment Management Case Study Analysis as well, but the development might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually presented specific threats to Windward Investment Management Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Windward Investment Management Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry along with presence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly overall revenues of Windward Investment Management Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in drawing in a big number of customers at a potential rate.
Together with it, the 2nd graph which shows the annual development in the Windward Investment Management Case Study Analysis total properties, reveals that the business is rather effective in adding value to its possessions through its profits. The development in assets shows that the overall value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the circulation of overall profits of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Windward Investment Management Case Study Analysis includes 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Windward Investment Management Case Study Solution consist of the suppliers 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 Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Windward Investment Management Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the decreasing market development. The business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to first collects the information related to the customer demand, the potential markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the business should decide one potential segment for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing rivals' items. After all the steps above the company need to choose the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a risk to the company's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
