Closing The Gap Facing The Future B Case Study Solution and Analysis
Intro
Closing The Gap Facing The Future B Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Closing The Gap Facing The Future B Case Study Help has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Closing The Gap Facing The Future B Case Study Analysis has certain strengths that can be used to reduce the dangers, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Closing The Gap Facing The Future B Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position permits the company to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase restrictions for the business in implementing its advancement program. The weak points of Closing The Gap Facing The Future B Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways 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 expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Closing The Gap Facing The Future B Case Study Analysis as well, but the growth might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular dangers to Closing The Gap Facing The Future B Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Closing The Gap Facing The Future B Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be computed. The total monetary efficiency of the business could be evaluated by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Closing The Gap Facing The Future B Case Study Help is growing and the company is rather effective in attracting a large number of customers at a possible cost.
Together with it, the second chart which shows the annual growth in the Closing The Gap Facing The Future B Case Study Solution overall properties, shows that the business is quite efficient in adding value to its properties through its profits. The development in assets reveals that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis regarding the distribution of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the business and the current patterns 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 substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Closing The Gap Facing The Future B Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Closing The Gap Facing The Future B Case Study Help includes the concerns of environmental 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 utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers 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 marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Closing The Gap Facing The Future B Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Closing The Gap Facing The Future B Case Study Help consist of;.
• 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Closing The Gap Facing The Future B Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing industry development. Introduction of digital publishing could show to be an instant service with low quantity of danger for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to first collects the data connected to the customer demand, the possible markets, the government guidelines and the data associated with the competitors presented in the market. After that, the company must decide one prospective segment for its preliminary offering. It should gather research study that how it might distinguish its digital publishing from the existing rivals' products. The steps above the business should go for the preliminary offering. The business should go for the other markets if the initial offering proves a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a danger to the company's long term presence, but the situation can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.
