Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Solution and Analysis
Intro
Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 circumstance? Do the long valuable 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Analysis has specific strengths that can be used to decrease the hazards, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase restraints for the business in implementing its development program. The weaknesses of Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Help are given as follows;
• Despite of being a science and innovation 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 needs to propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Solution as well, however the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually presented certain hazards to Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry in addition to existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total earnings of Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of consumers at a prospective rate.
Together with it, the second graph which reveals the yearly growth in the Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Help total assets, shows that the business is quite efficient in adding worth to its possessions through its profits. 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 provided data might be the analysis relating to the circulation of overall profits of the business. Major 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 organisation sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short 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 individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional 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 strategies etc. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Solution consists of the issues of environmental 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 used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the virtual libraries on particular sites. The altering consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Analysis consist of the suppliers of the paper for releasing 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 Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely 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 Country Matters Executives Weigh In On The Causes And Counter Measures Of Counterfeit Trade Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant solution to prevent the declining market growth. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first collects the information related to the consumer demand, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a hazard to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
