Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Solution and Analysis
Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing information and interaction services. Significant service sectors of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major items consist of books, regulars, online media, exhibitions, research reports and so on. Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Help has become a specialized information company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Analysis in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Help has certain strengths that can be made use of to reduce the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong monetary position permits the business to consider several development opportunities without any worry of raising fund externally.
Together with the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing industry is decreasing because 2008, impacting Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Help also, however the development might be revived by availing certain chances presented in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has presented specific risks to Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry together with presence of high competitors increases the danger of losing the client base.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly overall revenues of Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Help 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 quite effective in attracting a big number of consumers at a prospective rate.
In addition to it, the 2nd chart which shows the annual development in the Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Solution overall assets, shows that the company is quite effective in adding value to its assets through its incomes. The growth in properties reveals that the overall value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis concerning the distribution of overall earnings of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a potential growth to attain its future advancement objective.
PESTEL analysis might be carried out to learn the different external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces affecting Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Analysis company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies related to the import of books impact the total service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative materials etc. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the digital libraries on specific sites. The changing customer choices towards digital learning increase the risk of alternative for the market.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Danish National Advanced Technology Foundation World Of Opportunities Video Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the company require an instant solution to avoid the decreasing market growth. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially collects the information related to the customer demand, the prospective markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing market is decreasing given that 2008, showing a danger to the company's long term presence, but the situation can be controlled by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.