Comcast Corporation 2 Case Study Solution and Analysis
Comcast Corporation 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Comcast Corporation 2 Case Study Analysis in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of 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 capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Comcast Corporation 2 Case Study Help has particular strengths that can be utilized to minimize the threats, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Comcast Corporation 2 Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong monetary position enables the company to think about a number of advancement opportunities without any worry of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase restraints for the business in executing its advancement program. The weaknesses of Comcast Corporation 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Although, the development of the publishing market is decreasing given that 2008, affecting Comcast Corporation 2 Case Study Analysis as well, but the development might be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has posed specific dangers to Comcast Corporation 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Comcast Corporation 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence 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 acquire a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with presence of high competition increases the danger of losing the customer base.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual overall earnings of Comcast Corporation 2 Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in attracting a big number of customers at a prospective price.
Along with it, the second graph which reveals the annual growth in the Comcast Corporation 2 Case Study Solution overall assets, shows that the company is rather efficient in including worth to its properties through its revenues. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis regarding the distribution of total earnings of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential growth to attain its future advancement goal.
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Comcast Corporation 2 Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the overall company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative materials and so on. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Comcast Corporation 2 Case Study Help. However, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering customer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Comcast Corporation 2 Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks 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 market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence 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, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Comcast Corporation 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market 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.
CMP runs in a highly competitive market with the existence 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 Comcast Corporation 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sectors, with a significant concentrate on instructional publications. CIP serves 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 could wean the marketplace share of Comcast Corporation 2 Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Comcast Corporation 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product 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 company sections to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an immediate option to prevent the declining market growth. Intro of digital publishing could show to be an immediate service with low quantity of danger for the company. Nevertheless, the company could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the data related to the customer need, the potential markets, the federal government policies and the information associated with the competitors provided in the market. After that, the company needs to choose one potential sector for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the company ought to go for the initial offering. The business must go for the other markets if the initial offering proves a success. In this method the company would have the ability to execute its digital publishing program.
The growth of the publishing market is decreasing because 2008, showing a danger to the company's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.