Currie Road Construction Limited B Case Study Solution and Analysis
Intro
Currie Road Construction Limited B Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and Currie Road Construction Limited B Case Study Analysis in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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 B Case Study Analysis has certain strengths that can be made use of to reduce the hazards, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Currie Road Construction Limited B Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position enables the business to think about several development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Currie Road Construction Limited B Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing considering that 2008, affecting Currie Road Construction Limited B Case Study Analysis as well, however the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business might also 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 growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned specific dangers to Currie Road Construction Limited B Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Currie Road Construction Limited B Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The overall financial performance of the company could be evaluated by utilizing the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Currie Road Construction Limited B Case Study Analysis is growing and the business is quite effective in attracting a large number of customers at a prospective rate.
In addition to it, the second graph which reveals the annual development in the Currie Road Construction Limited B Case Study Analysis total assets, reveals that the business is rather effective in including worth to its assets through its profits. The development in properties reveals that the total value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis concerning the circulation of overall profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the company and the current patterns 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 could have a considerable influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces impacting Currie Road Construction Limited B Case Study Help company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Currie Road Construction Limited B Case Study Solution in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies related to the import of books affect the general organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Currie Road Construction Limited B Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs 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 individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Currie Road Construction Limited B Case Study Solution consist of the suppliers 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.
Haggling 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 market saturation, the buyers needs high quality documents at competitive rates.
Rivals 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. Significant rivals of Currie Road Construction Limited B Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
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 company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business need an instant solution to prevent the decreasing market growth. For that reason, intro of digital publishing could prove to be an immediate service with low quantity of risk for the company. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the consumer demand, the prospective markets, the government policies and the data related to the competitors provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
