Assignment 2 Case Study Solution and Analysis
Intro
Assignment 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing information and interaction services. Significant service sectors of the company include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major products include books, regulars, online media, exhibits, research reports and so on. Assignment 2 Case Study Solution has become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and Assignment 2 Case Study Solution in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be used 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
Assignment 2 Case Study Help has certain strengths that can be utilized to decrease the hazards, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Assignment 2 Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position permits the company to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restrictions for the business in implementing its development program. The weak points of Assignment 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting Assignment 2 Case Study Solution too, but the development could be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually presented specific risks to Assignment 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Assignment 2 Case Study Analysis due to the consumer 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 rivals can gain a strong consumer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market along with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly overall profits of Assignment 2 Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is quite effective in bring in a big number of customers at a possible rate.
Along with it, the 2nd chart which shows the annual growth in the Assignment 2 Case Study Solution total properties, reveals that the company is quite efficient in adding value to its possessions through its incomes. The growth in assets reveals that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given data might be the analysis concerning the circulation of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Assignment 2 Case Study Help business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Assignment 2 Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies associated with the import of books impact the general business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative materials etc. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Assignment 2 Case Study Help. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Assignment 2 Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous 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 Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Assignment 2 Case Study Help include the providers of the paper for releasing documents. 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 Buyer.
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 marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence 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 rivals of Assignment 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 CMP easily in the existing 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 company scale. It is also among the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry growth. For that reason, introduction of digital publishing could show to be an immediate service with low amount of risk for the company. However, the business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company must initially collects the information associated with the customer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. After that, the company needs to decide one possible section for its initial offering. It should gather research that how it might differentiate its digital publishing from the existing rivals' products. The actions above the business ought to go for the initial offering. The company needs to go for the other markets if the initial offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a hazard to the business's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
