Currie Road Construction Limited A Case Study Solution and Analysis
Intro
Currie Road Construction Limited A Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing details and interaction services. Significant company sections of the business include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant products include books, periodicals, online media, exhibits, research reports and so on. Currie Road Construction Limited A Case Study Help has actually ended up being a specialized info service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Currie Road Construction Limited A Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 valuable experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Currie Road Construction Limited A Case Study Help has certain strengths that can be utilized to reduce the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Currie Road Construction Limited A Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position allows the company to consider several development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase constraints for the business in executing its development program. The weak points of Currie Road Construction Limited A Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Currie Road Construction Limited A Case Study Analysis too, however the development could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific hazards to Currie Road Construction Limited A Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Currie Road Construction Limited A Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall earnings of Currie Road Construction Limited A Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in bring in a big number of clients at a potential cost.
Along with it, the second graph which reveals the yearly growth in the Currie Road Construction Limited A Case Study Help overall assets, shows that the business is rather efficient in adding value to its possessions through its revenues. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the circulation of total earnings of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Currie Road Construction Limited A Case Study Solution organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Currie Road Construction Limited A Case Study Analysis includes the issues of environmental 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 used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Currie Road Construction Limited A Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Currie Road Construction Limited A Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major focus on educational publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Currie Road Construction Limited A Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company require an instant option to avoid the declining market development. For that reason, intro of digital publishing might prove to be an instant option with low quantity of threat for the company. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to first collects the data connected to the consumer demand, the prospective markets, the federal government policies and the information connected to the competitors presented in the market. After that, the company needs to decide one potential segment for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing rivals' products. The steps above the company must go for the initial offering. The company needs to go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
