Altoona State Investment Board July 2012 Case Study Solution and Analysis
Altoona State Investment Board July 2012 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing information and communication services. Major service sections of the company include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its significant products include books, periodicals, online media, exhibitions, research study reports and so on. Altoona State Investment Board July 2012 Case Study Analysis has actually ended up being a specialized information provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Altoona State Investment Board July 2012 Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Altoona State Investment Board July 2012 Case Study Analysis has particular strengths that can be used to reduce the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Altoona State Investment Board July 2012 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong financial position enables the business to consider numerous advancement opportunities without any fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restrictions for the business in executing its advancement program. The weak points of Altoona State Investment Board July 2012 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing market is decreasing since 2008, affecting Altoona State Investment Board July 2012 Case Study Solution as well, however the development might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has actually postured particular risks to Altoona State Investment Board July 2012 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Altoona State Investment Board July 2012 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the risk of losing the customer base.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual overall revenues of Altoona State Investment Board July 2012 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in bring in a big number of customers at a prospective price.
In addition to it, the 2nd graph which shows the yearly development in the Altoona State Investment Board July 2012 Case Study Solution overall assets, shows that the company is quite efficient in including worth to its possessions through its revenues. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the distribution of total profits of the business. Huge part of the incomes 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 organisation segments with a possible growth to attain its future advancement goal.
PESTEL analysis could be performed to find out the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces impacting Altoona State Investment Board July 2012 Case Study Solution organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Altoona State Investment Board July 2012 Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books affect the general business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials and so on. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the Altoona State Investment Board July 2012 Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Altoona State Investment Board July 2012 Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal regulations 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.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Altoona State Investment Board July 2012 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Altoona State Investment Board July 2012 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in numerous market segments, with a major focus on instructional publications. CIP functions 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 marketplace share of Altoona State Investment Board July 2012 Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Altoona State Investment Board July 2012 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an immediate solution to avoid the decreasing industry growth. Intro of digital publishing might show to be an immediate service with low quantity of risk for the business. Nevertheless, the company could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business ought to first gathers the information connected to the customer need, the possible markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the company should choose one prospective segment for its initial offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' products. After all the steps above the business must opt for the preliminary offering. If the preliminary offering shows a success, the company must choose the other markets. In this method the company would have the ability to implement its digital publishing program.
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the business's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.