Areva 3 Case Study Solution and Analysis
Introduction
Areva 3 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and Areva 3 Case Study Analysis in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Areva 3 Case Study Help has specific strengths that can be used to minimize the threats, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Areva 3 Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the company to think about several advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its advancement program. The weaknesses of Areva 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Areva 3 Case Study Analysis as well, but the development could be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned particular dangers to Areva 3 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Areva 3 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. Nevertheless, the total financial performance of the business could be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Areva 3 Case Study Analysis is growing and the business is rather effective in attracting a large number of consumers at a potential rate.
Together with it, the second graph which shows the annual development in the Areva 3 Case Study Help overall possessions, shows that the company is rather effective in adding value to its possessions through its earnings. The development in possessions shows that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the distribution of overall incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Areva 3 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the overall company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Areva 3 Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Areva 3 Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Areva 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a major focus on instructional publications. CIP functions as a danger 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 marketplace share of Areva 3 Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant solution to avoid the declining industry growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the information related to the consumer need, the possible markets, the federal government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
