Areva Nuclear Power Case Study Solution and Analysis
Introduction
Areva Nuclear Power Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details supplier and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Areva Nuclear Power Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining 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 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 capabilities of the company could be used 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 Nuclear Power Case Study Solution has certain strengths that can be made use of to minimize the risks, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Areva Nuclear Power Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the business to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Areva Nuclear Power Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Areva Nuclear Power Case Study Solution also, but the growth might be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has presented specific risks to Areva Nuclear Power Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Areva Nuclear Power Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry along with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly total incomes of Areva Nuclear Power Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is rather effective in drawing in a large number of customers at a possible price.
Together with it, the second chart which shows the annual development in the Areva Nuclear Power Case Study Analysis overall assets, reveals that the company is quite efficient in adding worth to its assets through its earnings. The development in properties shows that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the circulation of overall earnings of the company. Major part of the incomes of CMP comes 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 prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting Areva Nuclear Power Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Areva Nuclear Power Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Along with it, the economic policies related to the import of books impact the overall company at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative products etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Areva Nuclear Power Case Study Solution. Nevertheless, 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 satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Areva Nuclear Power Case Study Solution consists of the issues of environmental communities 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 used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Areva Nuclear Power Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Areva Nuclear Power Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market sectors, with a significant concentrate on educational publications. CIP acts as a threat 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 market share of Areva Nuclear Power Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition 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 demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining industry growth. The business 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 business should first gathers the data related to the consumer need, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
