Arts And Communication Counselor Inc Case Study Solution and Analysis
Introduction
Arts And Communication Counselor Inc Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing info and communication services. Significant business segments of the company include; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Arts And Communication Counselor Inc Case Study Analysis has actually become a specialized information service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Arts And Communication Counselor Inc Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 scenario? Do the long valuable experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Arts And Communication Counselor Inc Case Study Analysis has particular strengths that can be made use of to lower the risks, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Arts And Communication Counselor Inc Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the company to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase constraints for the business in implementing its advancement program. The weak points of Arts And Communication Counselor Inc Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Arts And Communication Counselor Inc Case Study Analysis as well, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce 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 reduce its reliance over Chinese markets by utilizing its vast funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has actually postured particular hazards to Arts And Communication Counselor Inc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Arts And Communication Counselor Inc Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry together with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly total revenues of Arts And Communication Counselor Inc Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a big number of clients at a prospective price.
Together with it, the second graph which shows the yearly growth in the Arts And Communication Counselor Inc Case Study Analysis overall assets, reveals that the business is quite efficient in including value to its properties through its incomes. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the distribution of total incomes of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting Arts And Communication Counselor Inc Case Study Solution service 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 basic and the Arts And Communication Counselor Inc Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies related to the import of books impact the total business at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Arts And Communication Counselor Inc Case Study Help includes the issues of ecological communities over the usage 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 damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract brand-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.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Arts And Communication Counselor Inc Case Study Analysis include the suppliers 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 provider for CMP is low.
Bargaining Power of Purchaser.
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 marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Arts And Communication Counselor Inc Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 business scale. It is likewise among the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an instant service to prevent the decreasing market growth. Therefore, intro of digital publishing might prove to be an instant solution with low amount of threat for the company. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first gathers the data associated with the customer need, the prospective markets, the federal government regulations and the information related to the rivals provided in the market. After that, the business needs to decide one potential section for its initial offering. It should collect research study that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the company must choose the preliminary offering. If the initial offering shows a success, the business needs to opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a danger to the company's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
