China S Challenge To Feed Its People Case Study Solution and Analysis
Introduction
China S Challenge To Feed Its People Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing info and interaction services. Major organisation sections of the business include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant items include books, periodicals, online media, exhibits, research study reports etc. China S Challenge To Feed Its People Case Study Solution has actually ended up being a specialized details provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and China S Challenge To Feed Its People Case Study Analysis in specific. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
China S Challenge To Feed Its People Case Study Analysis has certain strengths that can be utilized to reduce the threats, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of China S Challenge To Feed Its People Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities 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 consider a number of development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase constraints for the company in executing its development program. The weak points of China S Challenge To Feed Its People Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting China S Challenge To Feed Its People Case Study Help as well, but the growth might be restored by availing specific chances provided in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually postured particular threats to China S Challenge To Feed Its People Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of China S Challenge To Feed Its People Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly overall revenues of China S Challenge To Feed Its People Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in bring in a big number of customers at a prospective cost.
Along with it, the second chart which shows the annual growth in the China S Challenge To Feed Its People Case Study Help total possessions, reveals that the business is quite effective in including worth to its possessions through its earnings. The growth in properties shows that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered information might be the analysis relating to the distribution of total earnings of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the general political forces affecting China S Challenge To Feed Its People Case Study Solution organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting China S Challenge To Feed Its People Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the files presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the China S Challenge To Feed Its People Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of China S Challenge To Feed Its People Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of danger for the company. Nevertheless, the business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should first collects the information related to the customer demand, the possible markets, the federal government policies and the information connected to the rivals provided in the market. After that, the business ought to choose one potential segment for its preliminary offering. It needs to collect research study that how it could differentiate its digital publishing from the existing rivals' products. The actions above the company should go for the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a threat to the company's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
