Career At A Crossroad Akhil Patel Case Study Solution and Analysis
Career At A Crossroad Akhil Patel Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Career At A Crossroad Akhil Patel Case Study Solution in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Career At A Crossroad Akhil Patel Case Study Help has certain strengths that can be used to minimize the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Career At A Crossroad Akhil Patel Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position enables the company to think about several development opportunities without any fear of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Career At A Crossroad Akhil Patel Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing industry is decreasing since 2008, affecting Career At A Crossroad Akhil Patel Case Study Analysis as well, however the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing market has positioned particular threats to Career At A Crossroad Akhil Patel Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Career At A Crossroad Akhil Patel Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the danger of losing the consumer base.
Due to lack of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total revenues of Career At A Crossroad Akhil Patel Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather effective in attracting a large number of consumers at a potential price.
Together with it, the 2nd graph which shows the annual growth in the Career At A Crossroad Akhil Patel Case Study Analysis total assets, shows that the business is quite effective in including value to its properties through its incomes. The growth in possessions shows that the total value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis regarding the circulation of overall earnings of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a prospective development to attain its future advancement objective.
PESTEL analysis might be performed to discover the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Career At A Crossroad Akhil Patel Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies related to the import of books affect the general service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful products and so on. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Career At A Crossroad Akhil Patel Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Career At A Crossroad Akhil Patel Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Career At A Crossroad Akhil Patel Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 requires high quality documents at competitive costs.
CMP operates in a highly competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Career At A Crossroad Akhil Patel Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its products in the market.
As the choices are moving towards digital publishing and the company require an instant solution to prevent the declining industry growth. The business could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first gathers the information associated with the consumer demand, the possible markets, the government guidelines and the information associated with the competitors presented in the market. After that, the company must decide one prospective sector for its initial offering. It ought to gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company need to go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
The growth of the publishing industry is declining considering that 2008, showing a risk to the company's long term existence, however the scenario can be managed by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.