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California Water Pricing Case Analysis

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California Water Pricing Case Study Solution and Analysis


Intro

California Water Pricing Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and interaction services. Significant organisation sections of the business include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major products include books, periodicals, online media, exhibits, research study reports etc. California Water Pricing Case Study Analysis has become a specialized details provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Important Issues

CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and California Water Pricing Case Study Help in specific. These aspects include;

• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
Executive Summary
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


California Water Pricing Case Study Solution has certain strengths that can be utilized to minimize the dangers, overcome the weakness and get the chances. Strengths of CMP are given as follows;

• The long term experience of California Water Pricing Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position enables the company to consider numerous advancement chances without any fear of raising fund externally.

Weaknesses

Together with the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of California Water Pricing Case Study Analysis are given as follows;

• Despite of being a science and technology publishing firm, the company 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 ought to propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is declining considering that 2008, impacting California Water Pricing Case Study Help as well, but the growth might be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;

• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.

Hazards

The altering macro trends in the market and increasing competition in the publishing industry has posed particular risks to California Water Pricing Case Study Solution consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries might cause decreasing market share of California Water Pricing Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number 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 specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the danger of losing the client base.

Monetary Analysis.
Swot Analysis
Due to lack of data, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual total profits of California Water Pricing Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a possible cost.

Together with it, the second graph which shows the annual growth in the California Water Pricing Case Study Help total assets, reveals that the company is quite effective in including worth to its properties through its incomes. The development in assets reveals that the overall value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).

Another monetary analysis of the company using the offered information could be the analysis regarding the distribution of overall profits of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible development to achieve its future development goal.

PESTEL Analysis

PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting California Water Pricing Case Study Analysis organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.

Cost-effective.

Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market.

Social and Demographical.

The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.

Technological.

Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting California Water Pricing Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.

Legal.

Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.

Market Analysis (Porter's Five Forces Design).

Porter's 5 Forces Design could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.

Threat of New Entrants.

Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.

Danger of Substitution.

Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the virtual libraries on certain sites. The altering customer choices towards digital learning increase the hazard of substitution for the industry.

Competitive Competition.

Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.

Bargaining Power of Provider.

The major suppliers of the California Water Pricing Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.

Bargaining Power of Buyer.

Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.

Rivals Analysis.

CMP operates 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 highest market share in the Chinese publishing market. Significant competitors of California Water Pricing Case Study Solution consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis among the close competitors of CMP. Founded in the same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in different market sectors, with a significant focus on academic publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of California Water Pricing Case Study Help easily in the current market circumstance.

Posts and telecommunication Press (PTP).

It was also founded in the very same period as California Water Pricing Case Study Solution 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: Broaden towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product 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 segments to the new one can lead the company to lose need of its products in the market.

Suggestions

As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the declining industry development. The business could likewise consider the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the company must initially collects the information associated with the consumer demand, the prospective markets, the government guidelines and the information connected to the competitors presented in the market. After that, the business ought to decide one prospective segment for its preliminary offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' products. After all the steps above the company ought to opt for the preliminary offering. The company needs to go for the other markets if the preliminary offering shows a success. In this method the company would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing market is declining considering that 2008, showing a risk to the business's long term presence, but the situation can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.

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