American Electric Power Investing In Forest Conservation Case Study Solution and Analysis
Introduction
American Electric Power Investing In Forest Conservation Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, American Electric Power Investing In Forest Conservation Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and CMP 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 methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous questions 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 abilities of the company could be made use of 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
American Electric Power Investing In Forest Conservation Case Study Solution has specific strengths that can be utilized to reduce the risks, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of American Electric Power Investing In Forest Conservation Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position allows the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase constraints for the company in executing its advancement program. The weak points of American Electric Power Investing In Forest Conservation Case Study Help are provided 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 growth. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting American Electric Power Investing In Forest Conservation Case Study Help as well, but the growth could be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has presented particular dangers to American Electric Power Investing In Forest Conservation Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of American Electric Power Investing In Forest Conservation Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. Nevertheless, the overall financial performance of the business could be analyzed by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of American Electric Power Investing In Forest Conservation Case Study Solution is growing and the company is quite efficient in attracting a a great deal of clients at a possible price.
Along with it, the 2nd chart which reveals the annual development in the American Electric Power Investing In Forest Conservation Case Study Solution overall possessions, shows that the company is quite effective in adding value to its properties through its revenues. The growth in assets shows that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis relating to the distribution of overall earnings of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting American Electric Power Investing In Forest Conservation Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting American Electric Power Investing In Forest Conservation Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market 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 competition for CMP.
Bargaining Power of Provider.
The major suppliers of the American Electric Power Investing In Forest Conservation Case Study Analysis include the providers of the paper for publishing files. 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.
Haggling power of purchaser 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 files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of American Electric Power Investing In Forest Conservation Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could 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 present market situation.
Posts and telecommunication Press (PTP).
Another close rival 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 regards to service scale. It is also among the prominent gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 company sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant solution to avoid the declining industry growth. The business could also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the consumer need, the possible markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a threat to the business's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.
