Cpi Card Group Case Study Solution and Analysis
Introduction
Cpi Card Group Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting info, processing information and communication services. Major service sections of the business include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major items consist of books, regulars, online media, exhibits, research reports etc. Cpi Card Group Case Study Help has ended up being a specialized information company and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Cpi Card Group Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several 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 capabilities of the company 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
Cpi Card Group Case Study Solution has certain strengths that can be used to reduce the dangers, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Cpi Card Group Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the company to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its development program. The weak points of Cpi Card Group Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Cpi Card Group Case Study Solution as well, however the development could be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has positioned particular hazards to Cpi Card Group Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Cpi Card Group Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total profits of Cpi Card Group Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in attracting a big number of customers at a prospective rate.
In addition to it, the second chart which reveals the annual development in the Cpi Card Group Case Study Analysis total possessions, reveals that the business is rather efficient in including value to its properties through its earnings. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis concerning the circulation of total revenues of the business. Major 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 might move towards other service sectors with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, 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 business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading useful products and so on. China has the greatest population on the planet with a high population growth, showing the increasing number of customers of the Cpi Card Group Case Study Help. However, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Cpi Card Group Case Study Help includes the issues of environmental communities over the usage 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 should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Cpi Card Group 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 overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the business 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 Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Cpi Card Group Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 company sectors to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate service to avoid the declining market growth. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to initially gathers the data related to the customer need, the prospective markets, the government regulations and the data connected to the rivals presented in the market. After that, the company needs to decide one prospective sector for its initial offering. It must collect research that how it could differentiate its digital publishing from the existing rivals' products. The actions above the business need to go for the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, showing a risk to the business's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
