Anandam Manufacturing Company 2 Case Study Solution and Analysis
Anandam Manufacturing Company 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing details and interaction services. Major company sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports and so on. Anandam Manufacturing Company 2 Case Study Help has become a specialized information supplier and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Anandam Manufacturing Company 2 Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Anandam Manufacturing Company 2 Case Study Solution has specific strengths that can be used to decrease the hazards, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Anandam Manufacturing Company 2 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position permits the business to think about numerous development opportunities without any fear of raising fund externally.
Together with the strengths, the company has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Anandam Manufacturing Company 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company 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 must propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing industry is decreasing since 2008, affecting Anandam Manufacturing Company 2 Case Study Analysis too, however the growth could be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
The changing macro patterns in the market and increasing competitors in the publishing market has presented specific risks to Anandam Manufacturing Company 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Anandam Manufacturing Company 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat 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, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the yearly total incomes of Anandam Manufacturing Company 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a possible rate.
Along with it, the 2nd graph which reveals the yearly development in the Anandam Manufacturing Company 2 Case Study Solution overall possessions, reveals that the business is quite efficient in adding value to its possessions through its incomes. The development in properties reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to the circulation of total profits of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a prospective development to accomplish its future advancement goal.
PESTEL analysis might be conducted to discover the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Anandam Manufacturing Company 2 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the total business at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces impacting Anandam Manufacturing Company 2 Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the risk of substitution 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 etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Anandam Manufacturing Company 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 purchasers needs high quality files at competitive prices.
CMP runs in an extremely competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors 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 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 very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an immediate service to prevent the decreasing industry growth. Therefore, intro of digital publishing could prove to be an immediate solution with low quantity of danger for the company. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should first collects the data related to the consumer need, the potential markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining since 2008, showing a danger to the company's long term existence, but the circumstance can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.