Damien Hirst And The Contemporary Art Market Case Study Solution and Analysis
Introduction
Damien Hirst And The Contemporary Art Market Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and Damien Hirst And The Contemporary Art Market Case Study Help in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Damien Hirst And The Contemporary Art Market Case Study Analysis has particular strengths that can be made use of to decrease the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Damien Hirst And The Contemporary Art Market Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position permits the business to think about a number of development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Damien Hirst And The Contemporary Art Market Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, 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 development. It needs to propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Damien Hirst And The Contemporary Art Market Case Study Analysis as well, however the growth might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned particular dangers to Damien Hirst And The Contemporary Art Market Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Damien Hirst And The Contemporary Art Market Case Study Analysis due to the customer shift towards digital libraries.
• The presence 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 get a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry along with existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be determined. Nevertheless, the total financial efficiency of the business could be evaluated by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Damien Hirst And The Contemporary Art Market Case Study Solution is growing and the company is quite effective in bring in a a great deal of customers at a possible price.
In addition to it, the second chart which reveals the yearly development in the Damien Hirst And The Contemporary Art Market Case Study Analysis overall assets, reveals that the business is quite effective in including worth to its properties through its revenues. The development in assets reveals that the overall value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the circulation of overall revenues of the company. 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 business segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Damien Hirst And The Contemporary Art Market Case Study Analysis includes the concerns of ecological 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 utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines 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 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the published files is the documents presented in the virtual libraries on certain websites. The changing customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Damien Hirst And The Contemporary Art Market Case Study Solution include the providers of the paper for publishing files. 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 Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Damien Hirst And The Contemporary Art Market Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Damien Hirst And The Contemporary Art Market Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant service to prevent the declining industry growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially gathers the information related to the customer need, the possible markets, the government regulations and the data connected to the rivals provided in the market. After that, the business must choose one potential sector for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company should choose the preliminary offering. If the initial offering shows a success, the business ought to choose the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a threat to the business's long term existence, but the scenario can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
