Construction Technology Case Study Solution and Analysis
Intro
Construction Technology Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Construction Technology Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised numerous 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 capabilities 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
Construction Technology Case Study Help has specific strengths that can be used to lower the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Construction Technology Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weak points of Construction Technology Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining since 2008, impacting Construction Technology Case Study Help as well, however the development could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer recognition 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 large financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented certain risks to Construction Technology Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Construction Technology Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be computed. The overall financial efficiency of the company could be examined by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Construction Technology Case Study Help is growing and the business is quite efficient in bring in a large number of clients at a potential cost.
Along with it, the second chart which reveals the annual development in the Construction Technology Case Study Analysis overall assets, reveals that the business is rather efficient in adding value to its possessions through its revenues. The growth in assets reveals that the overall value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis concerning the distribution of overall revenues of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting Construction Technology Case Study Help company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Construction Technology Case Study Analysis 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 combine effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the overall organisation at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Construction Technology Case Study Solution consists of 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 needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the digital libraries on certain sites. The altering customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry 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, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Construction Technology Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Construction Technology Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and second in various market sectors, with a significant focus on instructional publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Construction Technology Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing market development. Intro of digital publishing might prove to be an immediate service with low quantity of risk for the business. However, the business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially collects the data related to the consumer demand, the potential markets, the federal government guidelines and the data related to the competitors provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term presence, but the scenario can be controlled by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
