Anandam Manufacturing Company Case Study Solution and Analysis
Anandam Manufacturing Company Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing info and communication services. Major business sectors of the company consist of; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major products include books, periodicals, online media, exhibits, research study reports and so on. Anandam Manufacturing Company Case Study Analysis has ended up being a specialized details company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Anandam Manufacturing Company Case Study Solution in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Anandam Manufacturing Company Case Study Solution has certain strengths that can be made use of to lower the risks, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Anandam Manufacturing Company Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position allows the business to think about several advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has specific weak points which could increase constraints for the business in executing its development program. The weaknesses of Anandam Manufacturing Company Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
The development of the publishing industry is declining given that 2008, impacting Anandam Manufacturing Company Case Study Analysis as well, but the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured particular dangers to Anandam Manufacturing Company Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Anandam Manufacturing Company Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be computed. The overall monetary performance of the company might be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Anandam Manufacturing Company Case Study Analysis is growing and the business is rather effective in drawing in a large number of consumers at a potential rate.
Together with it, the 2nd chart which reveals the annual development in the Anandam Manufacturing Company Case Study Help overall assets, reveals that the company is rather effective in including value to its properties through its incomes. The development in possessions shows that the overall value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the offered data might be the analysis concerning the distribution of total profits of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a prospective growth to accomplish its future development goal.
PESTEL analysis might be performed to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Anandam Manufacturing Company Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies related to the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative products and so on. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Anandam Manufacturing Company Case Study Help. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces affecting Anandam Manufacturing Company Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the documents presented in the digital libraries on specific websites. The changing customer choices towards digital learning increase the threat of substitution 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 and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Anandam Manufacturing Company Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 purchasers needs high quality documents at competitive costs.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Anandam Manufacturing Company Case Study Solution 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Anandam Manufacturing Company Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its products in the market.
As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry growth. The business could 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 ought to first gathers the information associated with the consumer demand, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the company needs to choose one possible segment for its preliminary offering. It ought to collect research study that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the company ought to choose the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to execute its digital publishing program.
The development of the publishing market is decreasing because 2008, revealing a danger to the business's long term existence, however the scenario can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.