Continental Media Group Business Highlights Case Study Solution and Analysis
Intro
Continental Media Group Business Highlights Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and Continental Media Group Business Highlights Case Study Analysis in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Continental Media Group Business Highlights Case Study Help has certain strengths that can be utilized to reduce the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Continental Media Group Business Highlights Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the business to think about numerous development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase restraints for the business in implementing its development program. The weaknesses of Continental Media Group Business Highlights Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Continental Media Group Business Highlights Case Study Help as well, but the development could be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned specific risks to Continental Media Group Business Highlights Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Continental Media Group Business Highlights Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be determined. The total monetary performance of the company could be analyzed by utilizing the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Continental Media Group Business Highlights Case Study Help is growing and the company is quite effective in attracting a a great deal of clients at a potential price.
Along with it, the second chart which reveals the annual growth in the Continental Media Group Business Highlights Case Study Help overall possessions, shows that the business is quite effective in adding worth to its possessions through its incomes. The growth in assets reveals that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the circulation of total incomes of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Continental Media Group Business Highlights Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the total business at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Continental Media Group Business Highlights Case Study Help includes the issues of ecological 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 harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Continental Media Group Business Highlights Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall 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 needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Continental Media Group Business Highlights Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Continental Media Group Business Highlights Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk 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 organisation sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant service to avoid the declining market growth. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the information related to the customer need, the potential markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a danger to the business's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
