Cemex Case Study Solution and Analysis
Introduction
Cemex Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing information and communication services. Significant organisation sectors of the company include; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its major items consist of books, regulars, online media, exhibits, research reports etc. Cemex Case Study Analysis has actually ended up being a specialized information company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Cemex Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cemex Case Study Solution has certain strengths that can be made use of to lower the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Cemex Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position enables the company to consider a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which could increase restraints for the business in executing its advancement program. The weak points of Cemex Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining given that 2008, affecting Cemex Case Study Solution as well, but the growth could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular hazards to Cemex Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Cemex Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market 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 promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP might not be calculated. However, the general financial performance of the business could be evaluated by using the charts given in the case Appendices. It could be examined from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Cemex Case Study Solution is growing and the company is rather efficient in attracting a large number of consumers at a prospective cost.
Together with it, the second graph which reveals the yearly development in the Cemex Case Study Solution overall possessions, shows that the company is quite effective in including worth to its properties through its earnings. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the distribution of overall revenues of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Cemex Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall business at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out informative materials and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the Cemex Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Cemex Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the digital libraries on specific sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Cemex Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Cemex Case Study Analysis consist of;.
• Chemical Market 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate option to avoid the declining industry growth. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the information related to the customer need, the potential markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company must 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 industry is decreasing considering that 2008, showing a risk to the company's long term presence, but the circumstance can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
