Cost Estimation Using Regression Analysis Case Study Solution and Analysis
Cost Estimation Using Regression Analysis Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and Cost Estimation Using Regression Analysis Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change 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 situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Cost Estimation Using Regression Analysis Case Study Analysis has certain strengths that can be made use of to reduce the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Cost Estimation Using Regression Analysis Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position enables the company to consider a number of development opportunities without any worry of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Cost Estimation Using Regression Analysis Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The development of the publishing market is decreasing since 2008, affecting Cost Estimation Using Regression Analysis Case Study Help as well, however the growth might be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has postured certain hazards to Cost Estimation Using Regression Analysis Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Cost Estimation Using Regression Analysis Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the danger of losing the customer base.
The company has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP might not be calculated. The total financial efficiency of the business might be examined by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Cost Estimation Using Regression Analysis Case Study Help is growing and the company is rather efficient in drawing in a large number of consumers at a possible cost.
Together with it, the 2nd graph which shows the yearly growth in the Cost Estimation Using Regression Analysis Case Study Solution overall assets, reveals that the company is rather efficient in including worth to its properties through its incomes. The growth in assets shows that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the circulation of total incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a possible growth to attain its future development objective.
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative materials and so on. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Cost Estimation Using Regression Analysis Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Ecological forces impacting Cost Estimation Using Regression Analysis Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper used 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 policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Cost Estimation Using Regression Analysis Case Study Solution include the providers of the paper for releasing documents. 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 Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
CMP runs in a highly competitive market with the presence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Cost Estimation Using Regression Analysis Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market sections, with a major focus on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Cost Estimation Using Regression Analysis Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining market development. For that reason, introduction of digital publishing might prove to be an immediate solution with low amount of risk for the business. The company might 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 needs to first collects the information connected to the consumer demand, the potential markets, the federal government policies and the data connected to the competitors presented in the market. After that, the company needs to choose one potential sector for its preliminary offering. It should gather research that how it might separate its digital publishing from the existing rivals' items. The actions above the business ought to go for the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to execute its digital publishing program.
The development of the publishing industry is declining since 2008, showing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.