A123 Systems Power Safety Life Case Study Solution and Analysis
Introduction
A123 Systems Power Safety Life Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing information and communication services. Significant organisation sectors of the business include; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. A123 Systems Power Safety Life Case Study Solution has actually become a specialized details supplier and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and A123 Systems Power Safety Life Case Study Analysis in particular. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of 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 abilities of the company could be utilized 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
A123 Systems Power Safety Life Case Study Solution has certain strengths that can be made use of to lower the dangers, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of A123 Systems Power Safety Life Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position allows the business to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase constraints for the business in implementing its development program. The weak points of A123 Systems Power Safety Life Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting A123 Systems Power Safety Life Case Study Help as well, but the growth could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has presented particular risks to A123 Systems Power Safety Life Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of A123 Systems Power Safety Life Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual total incomes of A123 Systems Power Safety Life Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is quite effective in attracting a large number of consumers at a possible cost.
Together with it, the second graph which reveals the yearly development in the A123 Systems Power Safety Life Case Study Help overall possessions, shows that the company is rather effective in adding value to its possessions through its revenues. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis regarding the circulation of total profits of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income 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.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting A123 Systems Power Safety Life Case Study Help includes the concerns of ecological 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to 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 prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files provided in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the A123 Systems Power Safety Life Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of A123 Systems Power Safety Life Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as A123 Systems Power Safety Life Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective 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 present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant solution to prevent the declining market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to first collects the data related to the consumer demand, the possible markets, the federal government regulations and the information related to the competitors 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 implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a hazard to the company's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
