Beijing Eaps Consulting Inc 3 Case Study Solution and Analysis
Introduction
Beijing Eaps Consulting Inc 3 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Beijing Eaps Consulting Inc 3 Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Beijing Eaps Consulting Inc 3 Case Study Analysis has particular strengths that can be utilized to minimize the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Beijing Eaps Consulting Inc 3 Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong financial position permits the company to think about numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which could increase restraints for the business in executing its advancement program. The weaknesses of Beijing Eaps Consulting Inc 3 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, affecting Beijing Eaps Consulting Inc 3 Case Study Help also, but the development might be restored by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific hazards to Beijing Eaps Consulting Inc 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Beijing Eaps Consulting Inc 3 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. The total financial performance of the business might be examined by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Beijing Eaps Consulting Inc 3 Case Study Solution is growing and the company is quite efficient in drawing in a large number of clients at a potential cost.
In addition to it, the second chart which shows the yearly development in the Beijing Eaps Consulting Inc 3 Case Study Help total properties, shows that the business is rather efficient in including worth to its assets through its earnings. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis concerning the circulation of total incomes of the company. Huge part of the profits 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 service sectors with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might 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 highly supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Beijing Eaps Consulting Inc 3 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books impact the general company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading helpful materials and so on. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Beijing Eaps Consulting Inc 3 Case Study Solution. However, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Beijing Eaps Consulting Inc 3 Case Study Solution consists of the issues of environmental communities 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 needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Beijing Eaps Consulting Inc 3 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest 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 market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Beijing Eaps Consulting Inc 3 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sections, with a significant concentrate on instructional publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Beijing Eaps Consulting Inc 3 Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Beijing Eaps Consulting Inc 3 Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant service to avoid the declining industry development. The business might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the consumer need, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a danger to the company's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
