Columbia Hills East Case Study Solution and Analysis
Intro
Columbia Hills East Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing information and communication services. Significant company segments of the business consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports etc. Columbia Hills East Case Study Help has become a specialized details company and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Columbia Hills East Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation 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 important experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Columbia Hills East Case Study Analysis has specific strengths that can be made use of to lower the dangers, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Columbia Hills East Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position enables the company to think about several advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Columbia Hills East Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Columbia Hills East Case Study Analysis too, however the growth could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has presented specific threats to Columbia Hills East Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Columbia Hills East Case Study Help due to the consumer shift towards virtual 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 consumer base by using certain methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be calculated. The overall financial efficiency of the company could be analyzed by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Columbia Hills East Case Study Analysis is growing and the company is rather effective in attracting a large number of customers at a potential cost.
Along with it, the second graph which reveals the yearly growth in the Columbia Hills East Case Study Solution overall possessions, reveals that the business is quite effective in adding value to its possessions through its revenues. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis regarding the distribution of total profits of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Columbia Hills East Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the overall organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Columbia Hills East Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the published files is the files presented in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers 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 participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Columbia Hills East Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Columbia Hills East Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sections, with a significant focus on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Columbia Hills East Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant service to prevent the declining market development. The company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a risk to the company's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
