Care Group 2 Case Study Solution and Analysis
Introduction
Care Group 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing details and communication services. Major organisation sectors of the company consist of; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items include books, periodicals, online media, exhibits, research study reports and so on. Care Group 2 Case Study Analysis has actually ended up being a specialized info service provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in general and Care Group 2 Case Study Help in specific. These factors consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions 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
Care Group 2 Case Study Solution has certain strengths that can be made use of to minimize the risks, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Care Group 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position enables the company to consider several development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Care Group 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining considering that 2008, affecting Care Group 2 Case Study Analysis as well, however the development could be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually postured certain threats to Care Group 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Care Group 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry along with existence of high competition increases the risk of losing the client base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be calculated. The overall financial performance of the business could be examined by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Care Group 2 Case Study Help is growing and the company is rather effective in drawing in a a great deal of customers at a prospective cost.
Along with it, the 2nd chart which shows the yearly growth in the Care Group 2 Case Study Solution total possessions, shows that the company is rather effective in adding worth to its properties through its revenues. The development in properties shows that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis concerning the distribution of total earnings of the business. Major 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 business could move towards other service sectors with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous 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 business is offered 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, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces impacting Care Group 2 Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Care Group 2 Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the overall company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out helpful materials and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Care Group 2 Case Study Help. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Care Group 2 Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the digital libraries on specific websites. The altering consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Care Group 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Care Group 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Care Group 2 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant solution to avoid the decreasing market development. The business could also 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 gathers the information related to the consumer need, the possible markets, the government regulations and the data related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
