Caijing Magazine A Case Study Solution and Analysis
Introduction
Caijing Magazine A Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info company and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and Caijing Magazine A Case Study Analysis in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Caijing Magazine A Case Study Solution has certain strengths that can be utilized to reduce the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Caijing Magazine A Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the business to consider several development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase constraints for the company in implementing its development program. The weak points of Caijing Magazine A Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting Caijing Magazine A Case Study Solution as well, but the growth might be restored by availing specific chances provided in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Caijing Magazine A Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Caijing Magazine A Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be calculated. The general monetary efficiency of the company could be examined by using the graphs provided in the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Caijing Magazine A Case Study Help is growing and the business is quite effective in bring in a large number of customers at a possible rate.
Together with it, the second chart which shows the annual growth in the Caijing Magazine A Case Study Analysis total properties, reveals that the business is rather effective in including value to its possessions through its earnings. The development in possessions reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis regarding the circulation of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Caijing Magazine A Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Caijing Magazine A Case Study Analysis includes the concerns of environmental communities over the use 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 needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition 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 competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Caijing Magazine A Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry 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 rivals of Caijing Magazine A Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in various market sections, with a major focus on instructional publications. CIP functions 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 market share of Caijing Magazine A Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Caijing Magazine A Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-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 business need an immediate service to prevent the decreasing market development. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the information related to the customer need, the potential markets, the federal government policies and the data related to the rivals presented in the market. After that, the business should choose one possible section for its initial offering. It ought to collect research that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the company should go for the preliminary offering. If the preliminary offering proves a success, the company should opt for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, showing a hazard to the company's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
