Ajk Enterprise Ajwa Dates Case Study Solution and Analysis
Introduction
Ajk Enterprise Ajwa Dates Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Ajk Enterprise Ajwa Dates Case Study Solution in specific. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business 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
Ajk Enterprise Ajwa Dates Case Study Help has specific strengths that can be used to reduce the hazards, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Ajk Enterprise Ajwa Dates Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong monetary position enables the company to consider a number of development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Ajk Enterprise Ajwa Dates Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business 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 should propose specific growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, affecting Ajk Enterprise Ajwa Dates Case Study Analysis as well, however the development could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has presented particular dangers to Ajk Enterprise Ajwa Dates Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Ajk Enterprise Ajwa Dates Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals 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 techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry along with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the annual total incomes of Ajk Enterprise Ajwa Dates Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in drawing in a large number of consumers at a prospective rate.
In addition to it, the 2nd graph which shows the yearly development in the Ajk Enterprise Ajwa Dates Case Study Help overall assets, reveals that the company is rather efficient in including worth to its properties through its revenues. The growth in possessions shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the circulation of total revenues of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn 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 business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out informative materials etc. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Ajk Enterprise Ajwa Dates Case Study Solution. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Ajk Enterprise Ajwa Dates Case Study Solution includes the concerns of environmental neighborhoods 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 must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the files presented in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Ajk Enterprise Ajwa Dates Case Study Help consist of the suppliers of the paper for publishing files. 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 Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Ajk Enterprise Ajwa Dates Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sectors, with a major concentrate on instructional publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Ajk Enterprise Ajwa Dates Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an immediate option to prevent the decreasing industry growth. Therefore, intro of digital publishing might prove to be an instant option with low amount of danger for the company. The company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to first collects the information associated with the customer need, the prospective markets, the government policies and the information connected to the competitors provided in the market. After that, the company should decide one prospective section for its initial offering. It should collect research study that how it could separate its digital publishing from the existing rivals' items. The actions above the company need to go for the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
