Atlantida 2 Case Study Solution and Analysis
Atlantida 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing information and interaction services. Significant company segments of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major products consist of books, regulars, online media, exhibitions, research study reports and so on. Atlantida 2 Case Study Analysis has ended up being a specialized details supplier and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Atlantida 2 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing firms 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Atlantida 2 Case Study Analysis has specific strengths that can be utilized to reduce the threats, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Atlantida 2 Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position enables the business to think about numerous advancement chances without any fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restrictions for the company in executing its development program. The weaknesses of Atlantida 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
The development of the publishing industry is decreasing given that 2008, impacting Atlantida 2 Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise present 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 reduce its reliance over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific hazards to Atlantida 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Atlantida 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular techniques like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry along with presence of high competition increases the threat of losing the client base.
The company has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP could not be calculated. The total monetary performance of the company might be examined by using the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Atlantida 2 Case Study Solution is growing and the company is rather efficient in bring in a large number of consumers at a prospective cost.
In addition to it, the second chart which shows the yearly growth in the Atlantida 2 Case Study Solution overall possessions, reveals that the company is rather effective in adding value to its possessions through its profits. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis relating to the distribution of overall incomes of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a potential growth to attain its future development goal.
PESTEL analysis could be performed to learn the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given 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 extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Atlantida 2 Case Study Help company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful products and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of consumers of the Atlantida 2 Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Atlantida 2 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the files provided in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Atlantida 2 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
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. Major competitors of Atlantida 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a significant focus on academic publications. CIP acts as a hazard 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 marketplace share of Atlantida 2 Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business require an instant option to avoid the declining industry development. The business could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially collects the data connected to the consumer need, the prospective markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the company ought to decide one possible sector for its initial offering. It ought to collect research that how it might separate its digital publishing from the existing rivals' items. After all the actions above the business should choose the initial offering. The business needs to go for the other markets if the initial offering proves a success. In this way the company would be able to implement its digital publishing program.
The growth of the publishing industry is declining given that 2008, showing a threat to the company's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.