1366 Technologies Case Study Solution and Analysis
Introduction
1366 Technologies Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, 1366 Technologies Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 made use of 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
1366 Technologies Case Study Solution has certain strengths that can be used to reduce the risks, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of 1366 Technologies Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position allows the company to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restrictions for the company in executing its development program. The weaknesses of 1366 Technologies Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting 1366 Technologies Case Study Analysis too, but the growth might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned specific dangers to 1366 Technologies Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of 1366 Technologies Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. The general financial efficiency of the business could be analyzed by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of 1366 Technologies Case Study Solution is growing and the company is quite efficient in attracting a large number of customers at a potential price.
Together with it, the second graph which shows the yearly development in the 1366 Technologies Case Study Help total assets, shows that the company is quite effective in adding value to its possessions through its revenues. The development in assets shows that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis relating to the circulation of total earnings of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting 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 combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading useful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the 1366 Technologies Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting 1366 Technologies Case Study Analysis includes the concerns of environmental neighborhoods over the usage 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 harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry 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 competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the 1366 Technologies Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of 1366 Technologies Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an immediate solution to avoid the declining market growth. Intro of digital publishing might prove to be an immediate solution with low amount of risk for the business. However, the business could 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 company ought to first collects the data related to the customer need, the possible markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering proves a success, the company 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 market is decreasing considering that 2008, showing a danger to the business's long term presence, however the situation can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
