Building Watson Not So Elementary My Dear Case Study Solution and Analysis
Building Watson Not So Elementary My Dear Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing info and interaction services. Major company segments of the company include; books, regulars, consultancy and circulation. The company has a large product portfolio and its significant items consist of books, periodicals, online media, exhibits, research study reports etc. Building Watson Not So Elementary My Dear Case Study Analysis has ended up being a specialized info company and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing market in general and Building Watson Not So Elementary My Dear Case Study Solution in specific. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Building Watson Not So Elementary My Dear Case Study Solution has particular strengths that can be used to minimize the threats, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Building Watson Not So Elementary My Dear Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong monetary position allows the business to consider a number of advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has certain weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Building Watson Not So Elementary My Dear Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining because 2008, impacting Building Watson Not So Elementary My Dear Case Study Solution also, but the growth might be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has presented specific hazards to Building Watson Not So Elementary My Dear Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Building Watson Not So Elementary My Dear Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the client base.
Due to absence of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly overall incomes of Building Watson Not So Elementary My Dear Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is rather effective in bring in a large number of clients at a possible rate.
In addition to it, the second chart which reveals the annual growth in the Building Watson Not So Elementary My Dear Case Study Solution overall assets, reveals that the company is rather effective in including worth to its properties through its profits. The growth in properties shows that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis relating to the distribution of total profits of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a prospective development to attain its future advancement goal.
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be said that the total political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out useful materials etc. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the Building Watson Not So Elementary My Dear Case Study Help. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Building Watson Not So Elementary My Dear Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed 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 involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the digital libraries on specific sites. The changing customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Building Watson Not So Elementary My Dear Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 buyers needs high quality files at competitive rates.
CMP runs in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Building Watson Not So Elementary My Dear Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining market growth. Intro of digital publishing might show to be an immediate service with low quantity of risk for the company. However, the company might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must first collects the data related to the customer demand, 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 company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing because 2008, showing a danger to the business's long term presence, however the scenario can be managed by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.