Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Solution and Analysis
Intro
Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns 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 abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis has particular strengths that can be utilized to decrease the risks, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the business to consider several advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, affecting Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Solution as well, however the development could be revived by availing certain chances presented in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has presented specific risks to Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be determined. However, the general financial performance of the company might be evaluated by using the graphs given up the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis is growing and the business is rather efficient in drawing in a a great deal of customers at a prospective rate.
Along with it, the 2nd chart which reveals the annual growth in the Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Help total properties, shows that the business is rather efficient in adding worth to its assets through its earnings. The growth in possessions shows that the total value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the circulation of overall profits of the business. 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 segments with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP company 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 CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents presented in the virtual libraries on specific websites. The altering customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a major concentrate on academic publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd 3 Case Study Help and CIP. It is likewise one of the prominent players 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 variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate option to prevent the decreasing industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to first collects the data related to the consumer demand, the potential markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, showing a threat to the company's long term existence, however the scenario can be controlled 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 instant basis and to prevent the danger of failure for entryway in the brand-new markets.
