Arundel Partners The Sequel Project 3 Case Study Solution and Analysis
Introduction
Arundel Partners The Sequel Project 3 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and Arundel Partners The Sequel Project 3 Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation 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 situation? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Arundel Partners The Sequel Project 3 Case Study Help has particular strengths that can be used to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Arundel Partners The Sequel Project 3 Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong monetary position permits the company to think about several advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase constraints for the business in implementing its development program. The weak points of Arundel Partners The Sequel Project 3 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining since 2008, impacting Arundel Partners The Sequel Project 3 Case Study Analysis as well, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has presented certain hazards to Arundel Partners The Sequel Project 3 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Arundel Partners The Sequel Project 3 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total earnings of Arundel Partners The Sequel Project 3 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in attracting a large number of clients at a possible rate.
Together with it, the second chart which shows the annual development in the Arundel Partners The Sequel Project 3 Case Study Help total possessions, shows that the business is quite efficient in adding value to its properties through its profits. The development in assets shows that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the given data could be the analysis relating to the circulation of total profits 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 business might move towards other service sectors with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Arundel Partners The Sequel Project 3 Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Arundel Partners The Sequel Project 3 Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies related to the import of books impact the total organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Arundel Partners The Sequel Project 3 Case Study Solution consists of the concerns of environmental 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Arundel Partners The Sequel Project 3 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Arundel Partners The Sequel Project 3 Case Study Help 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 duration, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in numerous market segments, with a major concentrate on educational publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Arundel Partners The Sequel Project 3 Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 business sections to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the decreasing industry development. For that reason, intro of digital publishing could show to be an instant service with low amount of threat for the company. Nevertheless, 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 item portfolio, the company should first gathers the data related to the consumer need, the prospective markets, the federal government regulations and the information connected to the competitors provided in the market. After that, the business should decide one possible sector for its initial offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the business must opt for the preliminary offering. The company needs to go for the other markets if the initial offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a danger to the business's long term presence, however the circumstance can be managed by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
