Anandam Manufacturing Company 2 Case Study Solution and Analysis
Anandam Manufacturing Company 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Anandam Manufacturing Company 2 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
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 valuable experience, technical resources and the capabilities 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?
Anandam Manufacturing Company 2 Case Study Solution has particular strengths that can be made use of to minimize the threats, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Anandam Manufacturing Company 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position permits the business to consider numerous development chances without any worry of raising fund externally.
Together with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Anandam Manufacturing Company 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is decreasing given that 2008, impacting Anandam Manufacturing Company 2 Case Study Help as well, but the growth might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could likewise 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 minimize its dependence over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain dangers to Anandam Manufacturing Company 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Anandam Manufacturing Company 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the threat of losing the customer base.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. However, the general monetary performance of the business could be evaluated by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Anandam Manufacturing Company 2 Case Study Analysis is growing and the business is quite effective in bring in a a great deal of customers at a prospective cost.
Together with it, the 2nd chart which reveals the annual development in the Anandam Manufacturing Company 2 Case Study Help overall possessions, reveals that the business is quite effective in adding value to its assets through its earnings. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis concerning the distribution of overall profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a potential development to accomplish its future development goal.
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Anandam Manufacturing Company 2 Case Study Analysis service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Anandam Manufacturing Company 2 Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the total company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading informative products and so on. China has the highest population on the planet with a high population growth, showing the increasing number of customers of the Anandam Manufacturing Company 2 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting Anandam Manufacturing Company 2 Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the 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 Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Anandam Manufacturing Company 2 Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Anandam Manufacturing Company 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Anandam Manufacturing Company 2 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining market growth. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should first gathers the information associated with the consumer demand, the potential markets, the government policies and the information related to the rivals provided in the market. After that, the company needs to choose one potential sector for its preliminary offering. It must gather research study that how it might distinguish its digital publishing from the existing competitors' items. The steps above the company should go for the preliminary offering. If the initial offering shows a success, the company must choose the other markets. In this way the company would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining since 2008, revealing a risk to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.