Avid Life B Case Study Solution and Analysis
Avid Life B Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing info and interaction services. Significant service segments of the company include; books, regulars, consultancy and distribution. The company has a large product portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports etc. Avid Life B Case Study Solution has actually ended up being a specialized information provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Avid Life B Case Study Help in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Avid Life B Case Study Help has particular strengths that can be used to reduce the risks, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Avid Life B Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong monetary position enables the company to consider numerous development opportunities with no worry of raising fund externally.
In addition to the strengths, the business has specific weak points which could increase constraints for the business in implementing its development program. The weak points of Avid Life B Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional 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 strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is declining given that 2008, affecting Avid Life B Case Study Help as well, however the growth might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce 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 minimize its reliance over Chinese markets by using its large funds.
The altering macro trends in the market and increasing competitors in the publishing industry has posed specific threats to Avid Life B Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Avid Life B Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the threat of losing the customer base.
The business has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The total financial efficiency of the business might be evaluated by using the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Avid Life B Case Study Solution is growing and the business is quite efficient in attracting a a great deal of consumers at a potential price.
Along with it, the 2nd chart which reveals the yearly development in the Avid Life B Case Study Solution total properties, shows that the company is quite efficient in including value to its possessions through its earnings. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis regarding the circulation of total earnings of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a prospective growth to attain its future advancement goal.
PESTEL analysis could be conducted to discover the various external forces impacting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Avid Life B Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful materials etc. China has the greatest population worldwide with a high population development, showing the increasing variety of consumers of the Avid Life B Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Avid Life B Case Study Solution consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Avid Life B Case Study Help consist of the providers of the paper for releasing 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 Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP runs in an extremely competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Avid Life B Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Avid Life B Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an instant option to prevent the declining market growth. For that reason, intro of digital publishing could show to be an instant option with low quantity of risk for the company. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should first gathers the data associated with the customer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the business must decide one prospective segment for its initial offering. It must gather research that how it could separate its digital publishing from the existing rivals' products. The actions above the business need to go for the preliminary offering. The business must go for the other markets if the initial offering proves a success. In this method the business would have the ability to execute its digital publishing program.
The development of the publishing industry is decreasing because 2008, revealing a risk to the business's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.