Wow Electrical Ltd Audit Case Study Solution and Analysis
Wow Electrical Ltd Audit 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 including; gathering details, processing information and interaction services. Major company sections of the business consist of; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. Wow Electrical Ltd Audit Case Study Solution has actually become a specialized information service provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Wow Electrical Ltd Audit Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Wow Electrical Ltd Audit Case Study Help has specific strengths that can be used to reduce the dangers, overcome the weak point and get the opportunities. 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 permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the company to consider a number of development opportunities with no worry of raising fund externally.
Together with the strengths, the company has particular weak points which could increase restraints for the company in implementing its advancement program. The weak points of Wow Electrical Ltd Audit Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
The development of the publishing industry is decreasing since 2008, impacting Wow Electrical Ltd Audit Case Study Analysis as well, however the development could be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has postured particular threats to Wow Electrical Ltd Audit Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Wow Electrical Ltd Audit Case Study Help due to the consumer shift towards digital libraries.
• The existence 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 get a strong consumer base by utilizing certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market together with existence of high competition increases the risk of losing the client base.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be determined. However, the overall financial performance of the business could be analyzed by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Wow Electrical Ltd Audit Case Study Solution is growing and the business is quite efficient in bring in a large number of customers at a prospective price.
Along with it, the second chart which shows the annual development in the Wow Electrical Ltd Audit Case Study Help total properties, shows that the business is quite efficient in including worth to its properties through its profits. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the given information could be the analysis relating to the distribution of overall incomes of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a possible growth to accomplish its future development objective.
PESTEL analysis could be carried out to find out the various external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Wow Electrical Ltd Audit Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the general organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading informative products and so on. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the Wow Electrical Ltd Audit Case Study Solution. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Wow Electrical Ltd Audit Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents provided in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Wow Electrical Ltd Audit Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry 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.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Wow Electrical Ltd Audit Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Wow Electrical Ltd Audit Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the company require an instant solution to avoid the declining industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should initially collects the information related to the customer demand, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.