Cpi Card Group Case Study Solution and Analysis
Intro
Cpi Card Group Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Cpi Card Group Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement 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 capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cpi Card Group Case Study Help has certain strengths that can be utilized to decrease the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Cpi Card Group Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position allows the company to consider a number of development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which might increase restraints for the business in executing its development program. The weak points of Cpi Card Group Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining because 2008, affecting Cpi Card Group Case Study Solution as well, however the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually postured specific hazards to Cpi Card Group Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Cpi Card Group Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly total incomes of Cpi Card Group Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in attracting a large number of clients at a potential rate.
In addition to it, the second graph which shows the yearly growth in the Cpi Card Group Case Study Solution overall assets, reveals that the company is rather effective in including worth to its assets through its revenues. The development in possessions reveals that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis regarding the distribution of overall revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Cpi Card Group Case Study Analysis business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative products etc. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Cpi Card Group Case Study Solution. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Cpi Card Group Case Study Analysis includes the concerns of ecological communities over the usage 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 policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first 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.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on particular websites. The altering consumer choices towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Cpi Card Group Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Cpi Card Group Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in different market segments, with a significant focus on instructional publications. CIP functions as a danger 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 market share of Cpi Card Group Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Cpi Card Group Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective 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 utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors 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 company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially collects the information associated with the customer demand, the potential markets, the government guidelines and the data associated with the rivals presented in the market. After that, the business ought to decide one prospective sector for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business need to go for the initial offering. The company should go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a hazard to the business's long term presence, however the situation can be controlled by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
