California Water Pricing 4 Case Study Solution and Analysis
California Water Pricing 4 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, California Water Pricing 4 Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of 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 business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
California Water Pricing 4 Case Study Solution has specific strengths that can be used to reduce the dangers, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of California Water Pricing 4 Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong financial position permits the business to think about several development chances without any worry of raising fund externally.
Together with the strengths, the business has certain weak points which could increase constraints for the company in implementing its advancement program. The weaknesses of California Water Pricing 4 Case Study Help are offered 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 development. It should propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is declining considering that 2008, impacting California Water Pricing 4 Case Study Analysis as well, however the development could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing market has presented specific threats to California Water Pricing 4 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of California Water Pricing 4 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competitors increases the threat of losing the client base.
The company has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP could not be calculated. However, the total monetary performance of the business could be evaluated by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of California Water Pricing 4 Case Study Help is growing and the business is rather effective in bring in a a great deal of customers at a prospective rate.
In addition to it, the 2nd chart which shows the annual development in the California Water Pricing 4 Case Study Help overall assets, shows that the business is rather effective in including value to its assets through its revenues. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis regarding the distribution of overall revenues of the business. Huge part of the incomes 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 prospective development to accomplish its future advancement objective.
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting California Water Pricing 4 Case Study Analysis company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP 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 effect the demand 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 needs to focus on digital publishing to satisfy the altering customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology together with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting California Water Pricing 4 Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the California Water Pricing 4 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of California Water Pricing 4 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks second and third in different market sections, with a significant concentrate on educational publications. 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 marketplace share of California Water Pricing 4 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as California Water Pricing 4 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate service to prevent the declining industry growth. Introduction of digital publishing could show to be an instant option with low amount of danger for the business. However, the company could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the consumer demand, the possible markets, the government guidelines and the information connected to the rivals provided in the market. After that, the company must decide one prospective sector for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the business should choose the preliminary offering. The company needs to go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing given that 2008, revealing a risk to the business's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.