Caijing Magazine B Case Study Solution and Analysis
Introduction
Caijing Magazine B Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Caijing Magazine B Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised a number of 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 company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Caijing Magazine B Case Study Solution has certain strengths that can be utilized to reduce the threats, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Caijing Magazine B Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position allows the business to consider numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase constraints for the company in executing its development program. The weaknesses of Caijing Magazine B Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Caijing Magazine B Case Study Solution as well, but the growth might be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific hazards to Caijing Magazine B Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Caijing Magazine B Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market along with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP might not be computed. However, the overall financial performance of the business could be evaluated by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Caijing Magazine B Case Study Analysis is growing and the company is rather efficient in drawing in a large number of customers at a prospective cost.
Along with it, the 2nd graph which shows the yearly growth in the Caijing Magazine B Case Study Solution total assets, reveals that the company is quite effective in including worth to its possessions through its earnings. The growth in properties shows that the overall worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis concerning the distribution of overall profits of the company. Huge 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 company might move towards other company sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Caijing Magazine B Case Study Analysis service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Caijing Magazine B Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the documents provided in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers 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 marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Caijing Magazine B 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 general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Caijing Magazine B Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Caijing Magazine B Case Study Solution and CIP. It is also one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an immediate service to avoid the declining industry growth. Therefore, introduction of digital publishing might show to be an immediate service with low quantity of risk for the business. The company might likewise consider 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 collects the data associated with the consumer demand, the possible markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the company must decide one potential sector for its preliminary offering. It should gather research that how it might separate its digital publishing from the existing rivals' products. The steps above the company need to go for the initial offering. If the initial offering proves a success, the business needs to choose the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term presence, but the scenario can be managed by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
