Chandpur Enterprises Limited Steel Division Case Study Solution and Analysis
Chandpur Enterprises Limited Steel Division Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing info and interaction services. Significant company sections of the business consist of; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products include books, periodicals, online media, exhibitions, research study reports etc. Chandpur Enterprises Limited Steel Division Case Study Analysis has become a specialized information supplier and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Chandpur Enterprises Limited Steel Division Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 capabilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Chandpur Enterprises Limited Steel Division Case Study Solution has specific strengths that can be utilized to reduce the risks, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Chandpur Enterprises Limited Steel Division Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong financial position allows the company to consider several development chances without any worry of raising fund externally.
Together with the strengths, the business has certain weak points which could increase restraints for the business in implementing its development program. The weaknesses of Chandpur Enterprises Limited Steel Division Case Study Help are provided 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 extremely relies over the Chinese markets for its growth. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
The growth of the publishing market is declining considering that 2008, impacting Chandpur Enterprises Limited Steel Division Case Study Help as well, but the growth could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has actually presented specific dangers to Chandpur Enterprises Limited Steel Division Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Chandpur Enterprises Limited Steel Division Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the consumer base.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the annual overall revenues of Chandpur Enterprises Limited Steel Division Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is quite efficient in attracting a large number of customers at a possible rate.
Along with it, the 2nd graph which reveals the annual development in the Chandpur Enterprises Limited Steel Division Case Study Solution overall possessions, reveals that the business is quite efficient in adding worth to its possessions through its incomes. The development in possessions reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given information might be the analysis relating to the distribution of overall profits of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a possible growth to achieve its future advancement objective.
PESTEL analysis might be carried out to learn the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Chandpur Enterprises Limited Steel Division Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative products and so on. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Chandpur Enterprises Limited Steel Division Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces affecting Chandpur Enterprises Limited Steel Division Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Chandpur Enterprises Limited Steel Division Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Chandpur Enterprises Limited Steel Division Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the declining market growth. For that reason, intro of digital publishing could prove to be an instant option with low quantity of danger for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the data related to the customer demand, the potential markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining since 2008, showing a risk to the company's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.