Building Watson Case Study Solution and Analysis
Introduction
Building Watson Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and Building Watson Case Study Analysis in particular. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Building Watson Case Study Solution has particular strengths that can be made use of to reduce the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Building Watson Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position allows the business to consider numerous development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Building Watson Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting Building Watson Case Study Solution as well, but the growth might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned particular dangers to Building Watson Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Building Watson Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual overall incomes of Building Watson Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in attracting a large number of clients at a potential rate.
Together with it, the 2nd chart which shows the annual growth in the Building Watson Case Study Help overall assets, shows that the business is quite efficient in including value to its properties through its profits. The development in properties reveals that the overall worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis concerning the circulation of overall earnings of the business. Huge 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 might move towards other organisation sections with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting Building Watson Case Study Solution service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Building Watson Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the overall service at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out helpful products etc. China has the greatest population on the planet with a high population growth, revealing the increasing variety of consumers of the Building Watson Case Study Help. However, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Building Watson Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the virtual libraries on particular sites. The altering customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers 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 also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Building Watson Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Building Watson Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in different market sectors, with a major focus on instructional publications. 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 could wean the marketplace share of Building Watson Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect 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: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining industry development. The business might 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 company should initially collects the information connected to the customer need, the prospective markets, the government policies and the data associated with the competitors provided in the market. After that, the company must decide one prospective section for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' products. The actions above the company need to go for the initial offering. If the initial offering proves a success, the company must choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a danger to the business's long term existence, but the situation can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
