Atlantida 2 Case Study Solution and Analysis
Introduction
Atlantida 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering info, processing information and communication services. Significant service sectors of the company include; books, regulars, consultancy and circulation. The company has a large item portfolio and its major products consist of books, regulars, online media, exhibits, research study reports etc. Atlantida 2 Case Study Solution has ended up being a specialized info company and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing market in general and Atlantida 2 Case Study Help in particular. These factors consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Atlantida 2 Case Study Solution has certain strengths that can be utilized to lower the risks, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Atlantida 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high worth to its clients.
• Strong monetary position allows the company to think about a number of development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of Atlantida 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Atlantida 2 Case Study Help as well, however the development might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually postured specific dangers to Atlantida 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Atlantida 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly overall revenues of Atlantida 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is rather effective in attracting a large number of customers at a potential price.
Along with it, the second graph which reveals the annual growth in the Atlantida 2 Case Study Help overall assets, shows that the company is quite effective in adding value to its possessions through its profits. The growth in properties reveals that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis concerning the distribution of total earnings of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the business 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 considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be said that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. 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 standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Atlantida 2 Case Study Solution consists of the issues of environmental neighborhoods 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 ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents provided in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Atlantida 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Atlantida 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a major concentrate on academic publications. CIP acts as a threat 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 marketplace share of Atlantida 2 Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining industry growth. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data related to the consumer demand, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a danger to the business's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
