Caijing Magazine B Case Study Solution and Analysis
Caijing Magazine B Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Caijing Magazine B Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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?
Caijing Magazine B Case Study Analysis has particular strengths that can be made use of to decrease the hazards, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Caijing Magazine B Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the business to consider a number of advancement opportunities without any worry of raising fund externally.
Together with the strengths, the business has certain weak points which might increase restrictions for the company in executing its development program. The weaknesses of Caijing Magazine B Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing industry is decreasing since 2008, impacting Caijing Magazine B Case Study Analysis as well, however the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competition in the publishing market has posed particular risks to Caijing Magazine B Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Caijing Magazine B Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the danger of losing the client base.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall earnings of Caijing Magazine B Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in attracting a big number of customers at a possible price.
Together with it, the second chart which shows the yearly development in the Caijing Magazine B Case Study Help total assets, shows that the business is quite effective in including value to its assets through its earnings. The development in properties reveals that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis relating to the circulation of total revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a potential growth to accomplish its future advancement goal.
PESTEL analysis could be performed to discover the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Caijing Magazine B Case Study Help company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Caijing Magazine B Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies related to the import of books affect the total company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out helpful materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Caijing Magazine B Case Study Analysis. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces impacting Caijing Magazine B Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-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.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on specific websites. The altering customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Caijing Magazine B Case Study Help include the suppliers 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.
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 marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Caijing Magazine B Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant concentrate on instructional publications. CIP functions 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 could wean the market share of Caijing Magazine B Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Caijing Magazine B Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the declining industry growth. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially gathers the data associated with the customer demand, the possible markets, the government regulations and the information related to the rivals presented in the market. After that, the company should decide one prospective sector for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' products. After all the steps above the company should go for the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining because 2008, showing a hazard to the business's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.