California Water Pricing Case Study Solution and Analysis
Intro
California Water Pricing Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, California Water Pricing Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous 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 abilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
California Water Pricing Case Study Analysis has particular strengths that can be utilized to minimize the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of California Water Pricing Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase restrictions for the business in executing its development program. The weak points of California Water Pricing Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting California Water Pricing Case Study Solution as well, but the growth might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented certain risks to California Water Pricing Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of California Water Pricing Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly total incomes of California Water Pricing Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a potential rate.
Together with it, the second chart which shows the annual growth in the California Water Pricing Case Study Solution overall properties, reveals that the company is rather effective in including worth to its properties through its revenues. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the distribution of overall incomes of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting California Water Pricing Case Study Help company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the California Water Pricing Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the total business at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting California Water Pricing Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the California Water Pricing Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest 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 market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of California Water Pricing Case Study Solution 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 duration, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market segments, with a major focus on instructional publications. CIP functions as a hazard 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 marketplace share of California Water Pricing Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as California Water Pricing Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate solution to prevent the declining industry development. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially gathers the data related to the customer need, the possible markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a hazard to the business's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
