Business Communication Case Study Solution and Analysis
Business Communication Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Business Communication Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns 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 used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Business Communication Case Study Analysis has particular strengths that can be used to decrease the risks, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Business Communication Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong monetary position enables the company to think about a number of development chances without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Business Communication Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to avoid its dependence over the Chinese markets to attain long term growth.
The development of the publishing industry is decreasing since 2008, impacting Business Communication Case Study Help as well, however the growth could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing market has positioned specific dangers to Business Communication Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Business Communication Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be determined. The general monetary efficiency of the company could be evaluated by using the charts provided in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Business Communication Case Study Solution is growing and the business is rather efficient in attracting a a great deal of customers at a potential price.
In addition to it, the second graph which reveals the yearly development in the Business Communication Case Study Help overall assets, reveals that the company is rather effective in including worth to its properties through its earnings. The growth in assets reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the distribution of total revenues of the business. Huge part of the profits of CMP comes 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 development goal.
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting Business Communication Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting Business Communication Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. However, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the virtual libraries on specific sites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive rivalry in the publishing industry 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 competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Business Communication Case Study Solution consist of the providers of the paper for publishing files. 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 Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
CMP runs in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Business Communication Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• 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 company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing market growth. Introduction of digital publishing could prove to be an instant solution with low quantity of danger for the company. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data related to the consumer demand, the prospective markets, the government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
The growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.