Care Group 3 Case Study Solution and Analysis
Care Group 3 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and Care Group 3 Case Study Analysis in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Care Group 3 Case Study Solution has particular strengths that can be made use of to reduce the threats, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Care Group 3 Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position allows the company to think about numerous advancement chances without any worry of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Care Group 3 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is decreasing because 2008, impacting Care Group 3 Case Study Help too, but the growth might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competition in the publishing market has actually presented specific risks to Care Group 3 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Care Group 3 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the risk of losing the consumer base.
Due to lack of data, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the annual total revenues of Care Group 3 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a large number of customers at a potential cost.
Along with it, the second chart which shows the annual growth in the Care Group 3 Case Study Solution overall properties, reveals that the business is quite efficient in including value to its assets through its incomes. The growth in possessions shows that the total value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the distribution of total revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential growth to attain its future advancement objective.
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting Care Group 3 Case Study Analysis service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Care Group 3 Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting Care Group 3 Case Study Analysis includes the issues of environmental communities over the use 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 harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the published documents is the files provided in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive competition in the publishing market 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. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Care Group 3 Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
CMP operates in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Care Group 3 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Care Group 3 Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to prevent the decreasing market development. For that reason, introduction of digital publishing could show to be an instant service with low amount of danger for the business. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must first gathers the data related to the consumer need, the prospective markets, the government regulations and the data connected to the competitors provided in the market. After that, the business should decide one potential section for its initial offering. It must collect research study that how it could distinguish its digital publishing from the existing rivals' products. The steps above the company should go for the initial offering. If the preliminary offering shows a success, the company should choose the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, showing a threat to the company's long term presence, however the circumstance can be managed by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.