Clothing Industry Case Study Solution and Analysis
Introduction
Clothing Industry Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Clothing Industry Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company 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
Clothing Industry Case Study Solution has certain strengths that can be used to reduce the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Clothing Industry Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position allows the company to think about a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Clothing Industry Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining since 2008, impacting Clothing Industry Case Study Help as well, but the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has presented certain risks to Clothing Industry Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Clothing Industry Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the danger of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly total earnings of Clothing Industry Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite effective in drawing in a big number of customers at a possible price.
Together with it, the second chart which shows the yearly growth in the Clothing Industry Case Study Analysis overall properties, reveals that the business is rather effective in including value to its assets through its revenues. The growth in properties shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of total incomes of the company. Major part of the earnings 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 business sections with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the total political forces impacting Clothing Industry Case Study Help service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Clothing Industry Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Clothing Industry Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations 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 Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement 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 replacement for the industry.
Competitive Rivalry.
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 rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Clothing Industry Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Clothing Industry Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
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 new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an instant service to avoid the declining industry development. Intro of digital publishing could show to be an immediate solution with low amount of threat for the business. Nevertheless, the company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should first collects the data related to the consumer demand, the prospective markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the business must decide one potential section for its preliminary offering. It must gather research study that how it might differentiate its digital publishing from the existing rivals' products. After all the steps above the company should choose the initial offering. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, showing a hazard to the company's long term presence, but the situation can be managed by considering an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
