Curtis Swann Case Study Solution and Analysis
Curtis Swann Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing details and communication services. Significant company segments of the company include; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. Curtis Swann Case Study Help has actually become a specialized details supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Curtis Swann Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 capabilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Curtis Swann Case Study Solution has specific strengths that can be made use of to reduce the dangers, get rid of the weakness and get 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 allows the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position allows the company to consider several development opportunities with no fear of raising fund externally.
Along with the strengths, the company has particular weak points which could increase restrictions for the business in implementing its development program. The weaknesses of Curtis Swann Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
The growth of the publishing industry is decreasing because 2008, affecting Curtis Swann Case Study Solution as well, but the development might be restored by availing particular chances provided in the market. The market chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has postured certain dangers to Curtis Swann Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Curtis Swann Case Study Help due to the customer 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 competitors can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the risk of losing the consumer base.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be determined. The overall financial performance of the business might be evaluated by using the graphs provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Curtis Swann Case Study Help is growing and the company is quite effective in drawing in a a great deal of clients at a possible price.
In addition to it, the 2nd graph which shows the yearly growth in the Curtis Swann Case Study Analysis total properties, shows that the company is quite efficient in adding worth to its properties through its revenues. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis regarding the circulation of total incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a potential growth to accomplish its future advancement goal.
PESTEL analysis could be performed to learn the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Curtis Swann Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books affect the total service at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental forces affecting Curtis Swann Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents provided in the virtual libraries on particular websites. The changing customer choices towards digital knowing increase the danger of substitution for the market.
Competitive competition in the publishing market is high. The presence of a great deal 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 also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Curtis Swann Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The company 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 Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks second and third in various market segments, with a major focus on instructional publications. CIP serves as a threat 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 Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to avoid the declining market development. For that reason, introduction of digital publishing could prove to be an immediate option with low amount of risk for the company. The company might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should first collects the information related to the consumer need, the possible markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing market is declining considering that 2008, revealing a risk to the company's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.