Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Solution and Analysis
Introduction
Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help has particular strengths that can be utilized to lower the risks, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position permits the business to think about numerous advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which could increase restraints for the business in implementing its development program. The weak points of Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help as well, but the development might be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually posed specific threats to Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual total revenues of Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in bring in a big number of consumers at a potential rate.
Together with it, the second graph which reveals the annual growth in the Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Solution total assets, reveals that the business is rather efficient in adding worth to its properties through its profits. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis concerning the distribution of total revenues of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Solution business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the total company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out informative materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of customers of the Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on certain sites. The changing customer choices towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help include the providers of the paper for publishing documents. 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Chandpur Enterprises Limited Steel Division Spreadsheet Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Chandpur Enterprises Limited Steel Division Spreadsheet 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 dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate option to avoid the decreasing market development. Therefore, introduction of digital publishing might prove to be an instant service with low quantity of threat for the business. However, the business could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the data related to the consumer demand, the prospective markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a threat to the company's long term existence, however the circumstance can be managed by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
