Assessment 1 Consultative Report Case Study Solution and Analysis
Introduction
Assessment 1 Consultative Report Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information company and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Assessment 1 Consultative Report Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Assessment 1 Consultative Report Case Study Help has particular strengths that can be utilized to lower the hazards, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Assessment 1 Consultative Report Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position enables the business to think about a number of development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase restraints for the business in implementing its development program. The weaknesses of Assessment 1 Consultative Report Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, impacting Assessment 1 Consultative Report Case Study Help as well, however the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has posed particular risks to Assessment 1 Consultative Report Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Assessment 1 Consultative Report Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly overall profits of Assessment 1 Consultative Report Case Study Solution throughout 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 bring in a large number of consumers at a prospective rate.
In addition to it, the second graph which shows the annual development in the Assessment 1 Consultative Report Case Study Help overall properties, shows that the company is rather efficient in including value to its assets through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis concerning the distribution of total incomes of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Assessment 1 Consultative Report Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative materials etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Assessment 1 Consultative Report Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Assessment 1 Consultative Report Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files presented in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry 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 marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Assessment 1 Consultative Report Case Study Solution consist of the suppliers of the paper for releasing 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.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Assessment 1 Consultative Report Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Assessment 1 Consultative Report Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present 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 focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an instant solution to prevent the declining market growth. Therefore, intro of digital publishing might show to be an instant option with low amount of danger for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must first gathers the information associated with the customer need, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. After that, the business must decide one possible sector for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the business should go for the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
