China Environment Fund Doing Well By Doing Good Case Study Solution and Analysis
Introduction
China Environment Fund Doing Well By Doing Good Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, China Environment Fund Doing Well By Doing Good Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
China Environment Fund Doing Well By Doing Good Case Study Analysis has particular strengths that can be utilized to decrease the risks, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of China Environment Fund Doing Well By Doing Good Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong financial position enables the company to think about several advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of China Environment Fund Doing Well By Doing Good Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting China Environment Fund Doing Well By Doing Good Case Study Help as well, however the growth might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has positioned particular threats to China Environment Fund Doing Well By Doing Good Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of China Environment Fund Doing Well By Doing Good Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly overall revenues of China Environment Fund Doing Well By Doing Good Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is quite efficient in bring in a big number of consumers at a potential price.
Together with it, the second chart which shows the yearly development in the China Environment Fund Doing Well By Doing Good Case Study Help total assets, reveals that the business is rather effective in including worth to its assets through its earnings. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting China Environment Fund Doing Well By Doing Good Case Study Analysis company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the China Environment Fund Doing Well By Doing Good Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the overall service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the China Environment Fund Doing Well By Doing Good Case Study Analysis. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting China Environment Fund Doing Well By Doing Good Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the China Environment Fund Doing Well By Doing Good Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence 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 an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of China Environment Fund Doing Well By Doing Good Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market growth. The company could also consider 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 collects the information related to the consumer demand, the possible markets, the government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a danger to the business's long term presence, but the scenario can be managed by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
