Wow Electrical Ltd Audit Case Study Solution and Analysis
Intro
Wow Electrical Ltd Audit Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing details and communication services. Significant organisation segments of the company consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. Wow Electrical Ltd Audit Case Study Solution has become a specialized details company and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and Wow Electrical Ltd Audit Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Wow Electrical Ltd Audit Case Study Analysis has certain strengths that can be utilized to lower the risks, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Wow Electrical Ltd Audit Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position allows the company to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its development program. The weak points of Wow Electrical Ltd Audit Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Wow Electrical Ltd Audit Case Study Help as well, however the development could be revived by availing specific chances presented in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned particular hazards to Wow Electrical Ltd Audit Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Wow Electrical Ltd Audit Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly overall revenues of Wow Electrical Ltd Audit Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in bring in a large number of customers at a potential price.
Together with it, the 2nd graph which reveals the annual growth in the Wow Electrical Ltd Audit Case Study Solution overall properties, shows that the business is rather effective in adding worth to its properties through its incomes. The growth in possessions reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the circulation of total revenues of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting Wow Electrical Ltd Audit Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative materials etc. China has the highest population in the world with a high population development, showing the increasing number of customers of the Wow Electrical Ltd Audit Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Wow Electrical Ltd Audit Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines 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 Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Wow Electrical Ltd Audit Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Wow Electrical Ltd Audit Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Wow Electrical Ltd Audit Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition 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 business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an instant option to prevent the declining market growth. For that reason, intro of digital publishing might prove to be an immediate option with low amount of threat for the business. However, the business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business must first gathers the information related to the consumer need, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a risk to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
