Beijing Eaps Consulting Inc 4 Case Study Solution and Analysis
Intro
Beijing Eaps Consulting Inc 4 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing info and interaction services. Significant organisation segments of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. Beijing Eaps Consulting Inc 4 Case Study Analysis has become a specialized details company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and Beijing Eaps Consulting Inc 4 Case Study Solution in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change 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 capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Beijing Eaps Consulting Inc 4 Case Study Solution has particular strengths that can be utilized to decrease the risks, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Beijing Eaps Consulting Inc 4 Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong monetary position allows the business to think about a number of development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase restrictions for the business in implementing its development program. The weak points of Beijing Eaps Consulting Inc 4 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, 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 must propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, impacting Beijing Eaps Consulting Inc 4 Case Study Solution as well, but the development might be restored by availing specific opportunities provided in the market. The market chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has posed particular dangers to Beijing Eaps Consulting Inc 4 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Beijing Eaps Consulting Inc 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be determined. Nevertheless, the total monetary efficiency of the business could be evaluated by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Beijing Eaps Consulting Inc 4 Case Study Solution is growing and the business is quite effective in attracting a large number of clients at a possible cost.
Along with it, the second graph which shows the annual growth in the Beijing Eaps Consulting Inc 4 Case Study Help total assets, reveals that the business is quite effective in adding value to its properties through its revenues. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis regarding the distribution of overall profits of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored 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 Beijing Eaps Consulting Inc 4 Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Beijing Eaps Consulting Inc 4 Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the overall organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out useful materials etc. China has the greatest population worldwide with a high population development, revealing the increasing variety of consumers of the Beijing Eaps Consulting Inc 4 Case Study Help. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Beijing Eaps Consulting Inc 4 Case Study Help includes the concerns of ecological communities 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 used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers 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 market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Beijing Eaps Consulting Inc 4 Case Study Solution include the suppliers of the paper for releasing 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 market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Beijing Eaps Consulting Inc 4 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 might wean the market share of CMP easily in the present market situation.
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 6th in the state-owned publishers in terms of service scale. It is likewise one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an instant solution to avoid the declining market growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the information related to the customer need, the prospective markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term presence, however the circumstance can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
