Aopda Case Study Solution and Analysis
Introduction
Aopda Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information company and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Aopda Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aopda Case Study Solution has particular strengths that can be used to minimize the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Aopda Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position allows the business to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase constraints for the business in executing its advancement program. The weaknesses of Aopda Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Aopda Case Study Analysis as well, but the growth could be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented certain hazards to Aopda Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Aopda Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market along with existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. The general monetary efficiency of the company could be analyzed by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Aopda Case Study Analysis is growing and the company is quite efficient in bring in a a great deal of clients at a prospective cost.
In addition to it, the second chart which shows the annual development in the Aopda Case Study Analysis total assets, shows that the company is quite efficient in adding value to its assets through its revenues. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis relating to the circulation of overall profits of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the business and the recent trends 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 government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP company are high. The federal 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 costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology together with the rise of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Aopda Case Study Help consists of 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 non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the documents provided in the virtual libraries on particular sites. The altering consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Aopda Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Aopda Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in various market sections, with a significant focus on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Aopda Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an instant service to avoid the declining industry growth. Therefore, intro of digital publishing might prove to be an immediate solution with low amount of risk for the business. However, the company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the consumer need, the potential markets, the government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, revealing a risk to the company's long term presence, however the situation can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
