Cemex Case Study Solution and Analysis
Cemex Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Cemex Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Cemex Case Study Solution has specific strengths that can be used to minimize the threats, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Cemex Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the company to think about numerous development opportunities with no worry of raising fund externally.
Together with the strengths, the company has specific weak points which might increase constraints for the company in implementing its development program. The weak points of Cemex Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
The growth of the publishing industry is declining considering that 2008, impacting Cemex Case Study Solution as well, however the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has postured particular hazards to Cemex Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Cemex Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to presence of high competition increases the risk of losing the consumer base.
Due to lack of data, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the yearly overall revenues of Cemex Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in drawing in a big number of clients at a potential price.
Together with it, the 2nd graph which reveals the yearly development in the Cemex Case Study Help overall possessions, shows that the business is rather effective in adding value to its possessions through its incomes. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis concerning the circulation of overall earnings of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a potential development to accomplish its future advancement objective.
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces impacting Cemex Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading informative products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of consumers of the Cemex Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental forces affecting Cemex Case Study Help includes the issues of environmental neighborhoods 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 should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the danger of replacement for the market.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Cemex Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Cemex Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in various market sections, with a major focus on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Cemex Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Cemex Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• 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.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an instant service to prevent the decreasing industry development. For that reason, introduction of digital publishing could show to be an immediate solution with low amount of danger for the company. The business might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should first gathers the information connected to the customer need, the possible markets, the government regulations and the data related to the rivals presented in the market. After that, the business ought to decide one potential segment for its preliminary offering. It ought to collect research study that how it could separate its digital publishing from the existing competitors' products. After all the steps above the business ought to go for the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing market is declining considering that 2008, showing a hazard to the business's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.