Arundel Partners The Sequel Project 3 Case Study Solution and Analysis
Arundel Partners The Sequel Project 3 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing info and communication services. Major organisation sectors of the company include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant products include books, periodicals, online media, exhibitions, research study reports and so on. Arundel Partners The Sequel Project 3 Case Study Analysis has actually ended up being a specialized info service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Arundel Partners The Sequel Project 3 Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of questions 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 abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Arundel Partners The Sequel Project 3 Case Study Analysis has certain strengths that can be utilized to decrease the threats, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Arundel Partners The Sequel Project 3 Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong financial position permits the business to think about numerous advancement opportunities without any fear of raising fund externally.
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its development program. The weak points of Arundel Partners The Sequel Project 3 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is declining given that 2008, impacting Arundel Partners The Sequel Project 3 Case Study Analysis also, however the development might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has presented specific hazards to Arundel Partners The Sequel Project 3 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Arundel Partners The Sequel Project 3 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry along with existence of high competition increases the threat of losing the customer base.
Due to lack of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total profits of Arundel Partners The Sequel Project 3 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in attracting a big number of customers at a potential rate.
In addition to it, the 2nd chart which shows the yearly growth in the Arundel Partners The Sequel Project 3 Case Study Analysis overall properties, reveals that the company is rather effective in adding worth to its properties through its earnings. The growth in possessions shows that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the circulation of overall earnings of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a potential growth to attain its future advancement goal.
PESTEL analysis could be carried out to find out the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces affecting Arundel Partners The Sequel Project 3 Case Study Help company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Arundel Partners The Sequel Project 3 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive competition in the publishing industry is high. The presence 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 likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Arundel Partners The Sequel Project 3 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals 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 one of the close competitors of CMP. Founded in the exact same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in different market sectors, with a major focus on educational publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Arundel Partners The Sequel Project 3 Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Arundel Partners The Sequel Project 3 Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company require an immediate solution to prevent the decreasing industry growth. The business might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must first collects the information related to the customer demand, the possible markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the business needs to decide one possible sector for its initial offering. It must collect research that how it could differentiate its digital publishing from the existing rivals' items. After all the actions above the business need to go for the preliminary offering. The business should go for the other markets if the initial offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is decreasing because 2008, showing a danger to the company's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.