Challenges Of Growth At Protegra Case Study Solution and Analysis
Introduction
Challenges Of Growth At Protegra Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing information and interaction services. Major service sections of the company consist of; books, regulars, consultancy and circulation. The business has a vast product portfolio and its significant items include books, periodicals, online media, exhibits, research reports etc. Challenges Of Growth At Protegra Case Study Solution has ended up being a specialized information supplier and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Challenges Of Growth At Protegra Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general 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 transformation 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 business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Challenges Of Growth At Protegra Case Study Solution has certain strengths that can be used to lower the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Challenges Of Growth At Protegra Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position permits the business to think about a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Challenges Of Growth At Protegra Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Challenges Of Growth At Protegra Case Study Solution too, however the development could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could 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 lower its reliance over Chinese markets by using its large funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has postured certain dangers to Challenges Of Growth At Protegra Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Challenges Of Growth At Protegra Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total incomes of Challenges Of Growth At Protegra Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in drawing in a large number of clients at a possible cost.
Together with it, the 2nd chart which shows the yearly growth in the Challenges Of Growth At Protegra Case Study Solution total properties, reveals that the company is rather efficient in including value to its properties through its revenues. The development in possessions shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the given data might be the analysis concerning the circulation of total revenues of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces impacting Challenges Of Growth At Protegra Case Study Solution company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Challenges Of Growth At Protegra Case Study Help in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the overall service at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Challenges Of Growth At Protegra Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Challenges Of Growth At Protegra Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Challenges Of Growth At Protegra Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks third and second in different market segments, with a major focus on educational publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Challenges Of Growth At Protegra Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Challenges Of Growth At Protegra Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an immediate service to prevent the declining industry growth. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the customer demand, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, showing a danger to the company's long term existence, however the situation can be controlled by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
