Critical Analysis Essay Case Study Solution and Analysis
Introduction
Critical Analysis Essay Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in basic and Critical Analysis Essay Case Study Solution in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Critical Analysis Essay Case Study Solution has particular strengths that can be used to reduce the dangers, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Critical Analysis Essay Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position permits the company to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which could increase restrictions for the company in implementing its development program. The weak points of Critical Analysis Essay Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Critical Analysis Essay Case Study Help as well, however the development might be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific hazards to Critical Analysis Essay Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Critical Analysis Essay Case Study Help 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 get a strong customer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be determined. The general monetary performance of the company might be examined by utilizing the charts provided in the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Critical Analysis Essay Case Study Help is growing and the company is quite efficient in drawing in a large number of clients at a possible rate.
In addition to it, the second graph which reveals the yearly growth in the Critical Analysis Essay Case Study Help total properties, reveals that the business is quite effective in including value to its assets through its incomes. The growth in assets reveals that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the distribution of total profits of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the performance of the business and the recent trends 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 might have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be said that the general political forces affecting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect 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 fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Critical Analysis Essay Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents presented in the digital libraries on particular sites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Critical Analysis Essay Case Study Solution include 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 provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Critical Analysis Essay Case Study Analysis include;.
• Chemical Market 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 type of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in numerous market sectors, with a significant focus on instructional publications. 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 marketplace share of Critical Analysis Essay Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should initially collects the data connected to the customer demand, the possible markets, the federal government policies and the information related to the rivals provided in the market. After that, the business should decide one prospective sector for its preliminary offering. It should collect research study that how it might separate its digital publishing from the existing rivals' items. The actions above the company should go for the initial offering. If the preliminary offering proves a success, the business should opt for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a threat to the business's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
