Anandam Manufacturing Company Case Study Solution and Analysis
Introduction
Anandam Manufacturing Company Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Anandam Manufacturing Company Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions 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 abilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Anandam Manufacturing Company Case Study Help has particular strengths that can be made use of to minimize the threats, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Anandam Manufacturing Company Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong monetary position permits the business to think about a number of advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Anandam Manufacturing Company Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, affecting Anandam Manufacturing Company Case Study Analysis as well, however the development could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has positioned specific hazards to Anandam Manufacturing Company Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Anandam Manufacturing Company Case Study Analysis due to the customer shift towards digital libraries.
• The presence 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 get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The overall financial performance of the company might be analyzed by using the charts offered in the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Anandam Manufacturing Company Case Study Analysis is growing and the business is rather efficient in drawing in a a great deal of customers at a prospective cost.
Along with it, the second graph which reveals the yearly development in the Anandam Manufacturing Company Case Study Solution total properties, reveals that the company is rather effective in adding worth to its assets through its incomes. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis relating to the circulation of total earnings of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be said that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Anandam Manufacturing Company Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books impact the total business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Anandam Manufacturing Company Case Study Solution. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology together with the rise of digital publishing might decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Anandam Manufacturing Company Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies 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 Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the digital libraries on specific sites. The altering customer choices towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry 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 marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Anandam Manufacturing Company Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Anandam Manufacturing Company Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a big time period, CIP held the biggest market share, and still ranks second and third in different market sectors, with a significant concentrate on educational publications. CIP serves 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 could wean the marketplace share of Anandam Manufacturing Company Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing market development. Intro of digital publishing could prove to be an instant service with low amount of threat for the business. The company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must first collects the data connected to the customer need, the prospective markets, the government regulations and the data related to the rivals presented in the market. After that, the company needs to decide one possible section for its preliminary offering. It needs to gather research study that how it could distinguish its digital publishing from the existing rivals' products. The steps above the business should go for the initial offering. If the preliminary offering proves a success, the business must choose the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a threat to the company's long term presence, however the situation can be controlled by considering an advancement plan 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 threat of failure for entrance in the new markets.
