Avid Life B Case Study Solution and Analysis
Intro
Avid Life B Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing details and communication services. Significant business segments of the company consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. Avid Life B Case Study Help has actually become a specialized details supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and Avid Life B Case Study Analysis in specific. These factors 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 technology.
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 important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Avid Life B Case Study Help has specific strengths that can be utilized to lower the risks, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Avid Life B Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position allows the company to think about a number of development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of Avid Life B Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, impacting Avid Life B Case Study Analysis also, however the development could be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain hazards to Avid Life B Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Avid Life B Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall revenues of Avid Life B Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a large number of consumers at a possible rate.
Together with it, the second graph which shows the yearly development in the Avid Life B Case Study Analysis total possessions, reveals that the company is rather effective in adding value to its possessions through its revenues. The development in possessions reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the distribution of total incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting Avid Life B Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Avid Life B Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the overall company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading helpful products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Avid Life B Case Study Solution. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Avid Life B Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the files presented in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Avid Life B Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Avid Life B Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major concentrate on instructional publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Avid Life B Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Avid Life B Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an immediate option to prevent the decreasing industry development. For that reason, intro of digital publishing could prove to be an instant solution with low amount of risk for the company. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to first collects the data related to the consumer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a danger to the company's long term existence, but the scenario can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
