Comcast Corporation 2 Case Study Solution and Analysis
Comcast Corporation 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and Comcast Corporation 2 Case Study Help in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Comcast Corporation 2 Case Study Help has specific strengths that can be utilized to lower the risks, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Comcast Corporation 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position permits the company to think about numerous advancement chances without any fear of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of Comcast Corporation 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company 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 should propose certain growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Although, the growth of the publishing market is decreasing considering that 2008, affecting Comcast Corporation 2 Case Study Help too, however the development could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competition in the publishing market has actually positioned specific risks to Comcast Corporation 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Comcast Corporation 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competition increases the danger of losing the client base.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP might not be calculated. The general monetary efficiency of the business could be evaluated by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Comcast Corporation 2 Case Study Solution is growing and the company is rather effective in drawing in a large number of clients at a potential cost.
Together with it, the 2nd chart which reveals the yearly development in the Comcast Corporation 2 Case Study Analysis total assets, shows that the company is rather efficient in adding value to its assets through its incomes. The development in properties shows that the total worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis concerning the circulation of total incomes of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a prospective development to accomplish its future development objective.
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Comcast Corporation 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out useful products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Comcast Corporation 2 Case Study Solution. Nevertheless, the customer 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 preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting Comcast Corporation 2 Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Comcast Corporation 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Comcast Corporation 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in numerous market sectors, with a major focus on academic publications. CIP acts as a threat 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 market share of Comcast Corporation 2 Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Comcast Corporation 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an instant option to prevent the declining industry growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of danger for the company. Nevertheless, the company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should first gathers the information connected to the consumer need, the potential markets, the federal government policies and the data associated with the rivals provided in the market. After that, the business needs to choose one prospective sector for its initial offering. It needs to collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the business should choose the initial offering. The company should go for the other markets if the initial offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing since 2008, revealing a threat to the company's long term presence, however the situation can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.