Century21 Sussex And Reilly Residential Case Study Solution and Analysis
Intro
Century21 Sussex And Reilly Residential Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Century21 Sussex And Reilly Residential Case Study Help in particular. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Century21 Sussex And Reilly Residential Case Study Help has specific strengths that can be used to lower the dangers, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Century21 Sussex And Reilly Residential Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong monetary position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of Century21 Sussex And Reilly Residential Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Century21 Sussex And Reilly Residential Case Study Help too, but the growth might be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The business could likewise 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 growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually positioned certain risks to Century21 Sussex And Reilly Residential Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Century21 Sussex And Reilly Residential Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total incomes of Century21 Sussex And Reilly Residential Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the business is quite effective in attracting a large number of customers at a potential rate.
In addition to it, the 2nd chart which reveals the yearly development in the Century21 Sussex And Reilly Residential Case Study Analysis overall properties, reveals that the business is quite efficient in adding value to its properties through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis regarding the circulation of total revenues of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Century21 Sussex And Reilly Residential Case Study Help 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 utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the documents provided in the digital libraries on specific sites. The altering consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Century21 Sussex And Reilly Residential Case Study Solution consist of the suppliers of the paper for publishing files. 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 Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Century21 Sussex And Reilly Residential Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Century21 Sussex And Reilly Residential Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the declining market growth. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the information related to the customer demand, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
