An English Teacher In South Korea Case Study Solution and Analysis
Intro
An English Teacher In South Korea Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, An English Teacher In South Korea Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
An English Teacher In South Korea Case Study Analysis has particular strengths that can be used to decrease the risks, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of An English Teacher In South Korea Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position enables the company to think about a number of advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restraints for the business in executing its development program. The weak points of An English Teacher In South Korea Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting An English Teacher In South Korea Case Study Solution as well, but the growth could be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed particular hazards to An English Teacher In South Korea Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of An English Teacher In South Korea Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall earnings of An English Teacher In South Korea Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in drawing in a big number of clients at a potential rate.
Along with it, the second chart which shows the annual growth in the An English Teacher In South Korea Case Study Solution overall properties, shows that the company is rather effective in including worth to its possessions through its profits. The growth in assets reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis relating to the distribution of total revenues of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand 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 needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting An English Teacher In South Korea Case Study Help 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 disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the released documents is the files presented in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the An English Teacher In South Korea Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of An English Teacher In South Korea Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a significant focus 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 might wean the market share of An English Teacher In South Korea Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business need an instant option to prevent the decreasing industry development. For that reason, intro of digital publishing might show to be an instant solution with low amount of threat for the business. Nevertheless, the company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must first gathers the information related to the customer demand, the possible markets, the federal government regulations and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a danger to the business's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
