Clothing Industry Case Study Solution and Analysis
Clothing Industry Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Clothing Industry Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing market in general 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 strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Clothing Industry Case Study Help has specific strengths that can be utilized to reduce the threats, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Clothing Industry Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position allows the business to consider several advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restrictions for the company in executing its development program. The weak points of Clothing Industry Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is decreasing considering that 2008, affecting Clothing Industry Case Study Solution also, however the development might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competition in the publishing market has postured particular threats to Clothing Industry Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Clothing Industry Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Due to absence of data, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual total profits of Clothing Industry Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in drawing in a big number of customers at a potential price.
Along with it, the second chart which shows the yearly growth in the Clothing Industry Case Study Solution total assets, shows that the company is quite effective in adding value to its assets through its earnings. The development in assets shows that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the circulation of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a possible growth to achieve its future advancement objective.
PESTEL analysis might be performed to find out the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology along with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting Clothing Industry Case Study Analysis 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 non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Clothing Industry Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Clothing Industry Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks third and second in different market sections, with a major focus on instructional publications. 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 could wean the marketplace share of Clothing Industry Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Clothing Industry Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the decreasing market growth. For that reason, intro of digital publishing might show to be an immediate service with low amount of threat for the company. The business could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first gathers the information related to the consumer need, the possible markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing given that 2008, revealing a risk to the company's long term presence, but the situation can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.