California Water Pricing 4 Case Study Solution and Analysis
Intro
California Water Pricing 4 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and California Water Pricing 4 Case Study Analysis in particular. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation 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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be utilized 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
California Water Pricing 4 Case Study Help has specific strengths that can be utilized to lower the threats, 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 Analysis in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the business to consider several advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase constraints for the business in executing its development program. The weaknesses of California Water Pricing 4 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining because 2008, affecting California Water Pricing 4 Case Study Analysis as well, however the development might be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has actually posed certain hazards to California Water Pricing 4 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of California Water Pricing 4 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry together with presence of high competition increases the danger of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The general financial performance of the company might be examined by using the graphs provided in the case Appendices. It could be examined from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of California Water Pricing 4 Case Study Solution is growing and the company is quite efficient in bring in a large number of consumers at a possible price.
Along with it, the second chart which reveals the annual growth in the California Water Pricing 4 Case Study Analysis total assets, shows that the business is rather effective in including value to its assets through its profits. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the offered information might be the analysis regarding the distribution of total revenues of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial 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. It might be said that the general political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative products and so on. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the California Water Pricing 4 Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting California Water Pricing 4 Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal 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 beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence 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, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the California Water Pricing 4 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest 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 industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of California Water Pricing 4 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as California Water Pricing 4 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service 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 internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to prevent the declining market development. Therefore, introduction of digital publishing could prove to be an instant service with low amount of danger for the company. However, the business could also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first collects the data related to the consumer need, the potential markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, showing a threat to the company's long term presence, however the circumstance can be controlled by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
