Altoona State Investment Board July 2012 Case Study Solution and Analysis
Introduction
Altoona State Investment Board July 2012 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and Altoona State Investment Board July 2012 Case Study Help in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Altoona State Investment Board July 2012 Case Study Help has specific strengths that can be utilized to lower the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Altoona State Investment Board July 2012 Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong monetary position allows the business to consider several advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of Altoona State Investment Board July 2012 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Altoona State Investment Board July 2012 Case Study Analysis as well, but the development could be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition 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 using its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned specific hazards to Altoona State Investment Board July 2012 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Altoona State Investment Board July 2012 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly overall incomes of Altoona State Investment Board July 2012 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite efficient in bring in a big number of consumers at a prospective rate.
In addition to it, the second chart which reveals the yearly development in the Altoona State Investment Board July 2012 Case Study Help total assets, shows that the business is quite effective in including worth to its possessions through its earnings. The development in properties reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the circulation of total incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate 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 needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Altoona State Investment Board July 2012 Case Study Solution includes the issues 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 ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
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 competition for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Altoona State Investment Board July 2012 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Altoona State Investment Board July 2012 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Altoona State Investment Board July 2012 Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant solution to avoid the decreasing industry development. The business might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information connected to the consumer need, the prospective markets, the government regulations and the information connected to the rivals provided in the market. After that, the company must choose one possible section for its preliminary offering. It should gather research that how it could distinguish its digital publishing from the existing competitors' items. The steps above the company ought to go for the initial offering. The business must go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term existence, but the circumstance can be controlled by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
