Curtis Swann Case Study Solution and Analysis
Curtis Swann Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Curtis Swann Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Curtis Swann Case Study Analysis has particular strengths that can be used to reduce the risks, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Curtis Swann Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position permits the business to consider several advancement chances with no worry of raising fund externally.
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Curtis Swann Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining considering that 2008, affecting Curtis Swann Case Study Analysis too, but the development could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing market has presented specific dangers to Curtis Swann Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Curtis Swann Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competitors increases the threat of losing the customer base.
The company has a quite competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. However, the total monetary performance of the business could be examined by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Curtis Swann Case Study Solution is growing and the company is quite efficient in drawing in a a great deal of consumers at a potential rate.
Along with it, the 2nd graph which reveals the yearly development in the Curtis Swann Case Study Analysis total assets, shows that the company is quite efficient in including value to its possessions through its incomes. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the distribution of overall earnings of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a possible growth to accomplish its future development goal.
PESTEL analysis could be carried out to find out the various external forces impacting 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).
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Curtis Swann Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the general company at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Curtis Swann Case Study Solution consists of the concerns of environmental 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 used while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Curtis Swann Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Curtis Swann Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major focus on instructional publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Curtis Swann Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the business need an instant service to avoid the declining market growth. The business could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially collects the data connected to the customer need, the possible markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the company must choose one potential segment for its initial offering. It must gather research study that how it might distinguish its digital publishing from the existing rivals' items. The actions above the business ought to go for the preliminary offering. The business ought to go for the other markets if the initial offering proves a success. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, revealing a threat to the company's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.