Assignment 2 Case Study Solution and Analysis
Assignment 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Assignment 2 Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing 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 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 capabilities 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?
Assignment 2 Case Study Help has specific strengths that can be utilized to reduce the hazards, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Assignment 2 Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position allows the company to think about numerous advancement opportunities with no fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of Assignment 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is decreasing given that 2008, affecting Assignment 2 Case Study Solution also, but the development could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented certain dangers to Assignment 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Assignment 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market together with presence of high competition increases the threat of losing the client base.
Due to absence of data, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual overall incomes of Assignment 2 Case Study Help throughout 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 business is rather effective in bring in a big number of customers at a possible cost.
Along with it, the 2nd graph which reveals the yearly growth in the Assignment 2 Case Study Analysis overall properties, reveals that the business is quite efficient in adding worth to its assets through its profits. The growth in possessions shows that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data could be the analysis regarding the circulation of overall revenues of the business. Major part of the profits 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 company sectors with a potential development to achieve its future development goal.
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Assignment 2 Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Assignment 2 Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. Together with it, the economic policies associated with the import of books impact the total business at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer 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 altering customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental forces affecting Assignment 2 Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the digital libraries on certain sites. The altering customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Assignment 2 Case Study Analysis include the suppliers of the paper for publishing files. 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.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
CMP runs 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 rivals of Assignment 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the business require an immediate service to prevent the declining industry development. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should first collects the data connected to the consumer need, the potential markets, the government policies and the data connected to the competitors presented in the market. After that, the company must choose one possible segment for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing rivals' products. The actions above the business should go for the preliminary offering. The company should go for the other markets if the initial offering proves a success. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining because 2008, showing a risk to the company's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.