Almadar Aljadid Telecommunication Company Case Study Solution and Analysis
Introduction
Almadar Aljadid Telecommunication Company Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Almadar Aljadid Telecommunication Company Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement 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 valuable experience, technical resources and the abilities of the business 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
Almadar Aljadid Telecommunication Company Case Study Analysis has specific strengths that can be used to reduce the dangers, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Almadar Aljadid Telecommunication Company Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong monetary position permits the company to consider numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Almadar Aljadid Telecommunication Company Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Almadar Aljadid Telecommunication Company Case Study Analysis as well, but the development could be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has posed specific dangers to Almadar Aljadid Telecommunication Company Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Almadar Aljadid Telecommunication Company Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total incomes of Almadar Aljadid Telecommunication Company Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a big number of clients at a potential price.
Along with it, the 2nd graph which reveals the annual development in the Almadar Aljadid Telecommunication Company Case Study Help overall possessions, shows that the company is quite effective in adding worth to its possessions through its profits. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of total profits of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Almadar Aljadid Telecommunication Company Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the documents presented in the virtual libraries on particular websites. The changing customer choices towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Almadar Aljadid Telecommunication Company Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Almadar Aljadid Telecommunication Company Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Almadar Aljadid Telecommunication Company Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an immediate option to prevent the decreasing industry development. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially gathers the data related to the consumer need, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, revealing a hazard to the company's long term existence, however the circumstance can be managed by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
