Chandpur Enterprises Limited Steel Division Case Study Solution and Analysis
Intro
Chandpur Enterprises Limited Steel Division Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing information and communication services. Significant business sectors of the company consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Chandpur Enterprises Limited Steel Division Case Study Solution has actually ended up being a specialized details service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Chandpur Enterprises Limited Steel Division Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Chandpur Enterprises Limited Steel Division Case Study Analysis has specific strengths that can be used to lower the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Chandpur Enterprises Limited Steel Division Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position enables the business to think about several development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Chandpur Enterprises Limited Steel Division Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, impacting Chandpur Enterprises Limited Steel Division Case Study Analysis as well, however the growth might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has postured specific hazards to Chandpur Enterprises Limited Steel Division Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Chandpur Enterprises Limited Steel Division Case Study Solution due to the customer shift towards digital libraries.
• The existence 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 acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market in addition to presence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be calculated. The total monetary efficiency of the company might be examined by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Chandpur Enterprises Limited Steel Division Case Study Solution is growing and the business is quite efficient in drawing in a a great deal of consumers at a potential rate.
Together with it, the 2nd chart which reveals the yearly growth in the Chandpur Enterprises Limited Steel Division Case Study Help overall properties, shows that the business is quite effective in including worth to its possessions through its earnings. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the circulation of overall earnings of the business. Major part of the profits 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 organisation segments with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Chandpur Enterprises Limited Steel Division Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies related to the import of books impact the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Chandpur Enterprises Limited Steel Division Case Study Help consists of the issues of ecological 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Chandpur Enterprises Limited Steel Division Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason 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 marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence 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 rivals of Chandpur Enterprises Limited Steel Division Case Study Analysis include;.
• Chemical Market 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 could wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate 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 items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant solution to prevent the declining industry development. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first gathers the data related to the customer need, the possible markets, the federal government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a risk to the business's long term existence, however the situation can be controlled by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
