Columbias Final Mission Abridged A Case Study Solution and Analysis
Introduction
Columbias Final Mission Abridged A Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Columbias Final Mission Abridged A Case Study Help in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining development 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 important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Columbias Final Mission Abridged A Case Study Solution has specific strengths that can be utilized to minimize the hazards, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Columbias Final Mission Abridged A Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position enables the company to think about several development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Columbias Final Mission Abridged A Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Columbias Final Mission Abridged A Case Study Solution as well, but the growth could be revived by availing specific chances presented 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 could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually presented certain hazards to Columbias Final Mission Abridged A Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Columbias Final Mission Abridged A Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly total earnings of Columbias Final Mission Abridged A Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a potential price.
In addition to it, the second graph which reveals the annual development in the Columbias Final Mission Abridged A Case Study Analysis overall properties, shows that the business is rather efficient in adding worth to its assets through its earnings. The development in possessions shows that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided information might be the analysis regarding the distribution of total revenues of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces affecting Columbias Final Mission Abridged A Case Study Help business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative materials etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Columbias Final Mission Abridged A Case Study Solution. The customer choices 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 consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Columbias Final Mission Abridged A Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into 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 Design might be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Columbias Final Mission Abridged A Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Columbias Final Mission Abridged A Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in various market segments, with a major concentrate on educational publications. 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 could wean the market share of Columbias Final Mission Abridged A Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal 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 moving towards digital publishing and the business need an instant solution to avoid the declining market development. Intro of digital publishing might show to be an instant solution with low amount of threat for the company. The company could also 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 company must initially gathers the information related to the customer need, the potential markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a threat to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The business 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 brand-new markets.
