Axeon N V Case Study Solution and Analysis
Intro
Axeon N V Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering information, processing info and communication services. Significant organisation sections of the business include; books, regulars, consultancy and distribution. The company has a huge product portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. Axeon N V Case Study Solution has become a specialized info company and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and Axeon N V Case Study Help in particular. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Axeon N V Case Study Analysis has certain strengths that can be utilized to minimize the dangers, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Axeon N V Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position permits the business to consider numerous development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Axeon N V Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Axeon N V Case Study Solution also, however the development might be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain risks to Axeon N V Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Axeon N V Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the yearly total revenues of Axeon N V Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in drawing in a large number of clients at a prospective cost.
Along with it, the 2nd graph which shows the yearly growth in the Axeon N V Case Study Help total properties, shows that the company is quite efficient in adding worth to its assets through its incomes. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the circulation of overall 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 business could move towards other business sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people 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 general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Axeon N V Case Study Analysis consists of the issues of ecological neighborhoods over the usage 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 must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Axeon N V Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Axeon N V Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company need an immediate solution to prevent the decreasing industry development. Therefore, introduction of digital publishing might show to be an immediate service with low amount of risk for the company. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business must first gathers the data related to the customer need, the possible markets, the government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a risk to the business's long term existence, however the scenario can be managed by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
