Colorscope Inc Case Study Solution and Analysis
Colorscope Inc Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in basic and Colorscope Inc Case Study Analysis in specific. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Colorscope Inc Case Study Help has specific strengths that can be utilized to lower the threats, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Colorscope Inc Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position allows the business to consider numerous development opportunities with no fear of raising fund externally.
In addition to the strengths, the business has specific weak points which could increase restraints for the business in executing its development program. The weaknesses of Colorscope Inc Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its reliance over the Chinese markets to attain long term growth.
The development of the publishing market is declining since 2008, impacting Colorscope Inc Case Study Solution as well, but the growth might be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has postured specific threats to Colorscope Inc Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Colorscope Inc Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
Due to lack of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall revenues of Colorscope Inc Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is quite effective in bring in a big number of consumers at a possible cost.
Together with it, the second chart which reveals the annual growth in the Colorscope Inc Case Study Help total assets, shows that the company is rather effective in including worth to its properties through its revenues. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis relating to the distribution of overall incomes of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a possible development to accomplish its future advancement goal.
PESTEL analysis might be conducted to find out the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces affecting Colorscope Inc Case Study Analysis company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Colorscope Inc Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Colorscope Inc Case Study Analysis include the providers 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 provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
CMP runs in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Colorscope Inc Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing industry growth. Therefore, introduction of digital publishing might prove to be an instant service with low amount of threat for the company. However, the business might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must first gathers the data associated with the customer need, the potential markets, the federal government regulations and the data related to the competitors provided in the market. After that, the business should decide one prospective sector for its initial offering. It needs to gather research study that how it could separate its digital publishing from the existing competitors' items. The actions above the business ought to go for the preliminary offering. The business ought to go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Although, the growth of the publishing market is declining considering that 2008, showing a threat to the business's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.