Concord Center 2 Case Study Solution and Analysis
Intro
Concord Center 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing info and communication services. Major organisation segments of the business consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports etc. Concord Center 2 Case Study Help has ended up being a specialized info provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and Concord Center 2 Case Study Analysis in specific. These elements include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Concord Center 2 Case Study Analysis has certain strengths that can be used to reduce the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Concord Center 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position permits the business to consider numerous advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the company in executing its advancement program. The weak points of Concord Center 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Concord Center 2 Case Study Solution as well, but the growth might be revived by availing particular opportunities 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 customer 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 using its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured certain threats to Concord Center 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Concord Center 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total earnings of Concord Center 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather efficient in attracting a big number of customers at a possible cost.
In addition to it, the 2nd chart which reveals the annual growth in the Concord Center 2 Case Study Analysis overall possessions, shows that the business is rather efficient in including value to its possessions through its earnings. The development in assets reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis relating to the circulation of overall revenues of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Concord Center 2 Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the total service at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful materials etc. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Concord Center 2 Case Study Analysis. However, the consumer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Concord Center 2 Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition 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 competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Concord Center 2 Case Study Help include the suppliers of the paper for releasing files. 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 Buyer.
Bargaining power of buyer 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 buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Concord Center 2 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 same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in different market sectors, with a significant concentrate on academic publications. CIP acts 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 could wean the market share of Concord Center 2 Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Concord Center 2 Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business need an instant solution to prevent the decreasing market development. Therefore, intro of digital publishing could prove to be an instant service with low quantity of risk for the business. Nevertheless, the company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to initially gathers the data related to the customer need, the possible markets, the government regulations and the information related to the rivals presented in the market. After that, the business ought to choose one potential sector for its initial offering. It needs to collect research that how it could distinguish its digital publishing from the existing competitors' products. After all the steps above the company should opt for the preliminary offering. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a risk to the business's long term existence, however the situation can be managed by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
