Centurian Media Doing The Right Things Case Study Solution and Analysis
Centurian Media Doing The Right Things Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Centurian Media Doing The Right Things Case Study Help in specific. These factors include;
• Entryway 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 a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Centurian Media Doing The Right Things Case Study Analysis has certain strengths that can be made use of to minimize the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Centurian Media Doing The Right Things Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the company to consider several advancement opportunities with no fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its development program. The weak points of Centurian Media Doing The Right Things Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
The growth of the publishing market is declining given that 2008, affecting Centurian Media Doing The Right Things Case Study Help as well, however the growth might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
The changing macro trends in the market and increasing competition in the publishing market has actually postured particular dangers to Centurian Media Doing The Right Things Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Centurian Media Doing The Right Things Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the risk of losing the customer base.
The company has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be computed. Nevertheless, the total financial efficiency of the company could be evaluated by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Centurian Media Doing The Right Things Case Study Analysis is growing and the company is quite effective in bring in a large number of customers at a prospective rate.
Together with it, the second graph which shows the yearly growth in the Centurian Media Doing The Right Things Case Study Solution total assets, shows that the business is rather efficient in including value to its possessions through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis concerning the distribution of total revenues of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible growth to achieve its future development objective.
PESTEL analysis might be conducted to learn the different external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Centurian Media Doing The Right Things Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the general company at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Centurian Media Doing The Right Things Case Study Analysis consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the risk of alternative for the market.
Competitive competition in the publishing industry 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 also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Centurian Media Doing The Right Things Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP runs in an extremely competitive industry with the presence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Centurian Media Doing The Right Things Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sections, with a significant focus on educational publications. CIP serves as a risk 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 marketplace share of Centurian Media Doing The Right Things Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Centurian Media Doing The Right Things Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business need an instant solution to avoid the declining industry growth. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first gathers the data connected to the consumer need, the possible markets, the government regulations and the data associated with the rivals provided in the market. After that, the company ought to decide one potential segment for its preliminary offering. It must gather research that how it could distinguish its digital publishing from the existing rivals' products. The steps above the business should go for the initial offering. If the initial offering proves a success, the business should go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is declining considering that 2008, revealing a threat to the company's long term presence, however the scenario can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.