Danish National Advanced Technology Foundation Case Study Solution and Analysis
Introduction
Danish National Advanced Technology Foundation Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Danish National Advanced Technology Foundation Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Danish National Advanced Technology Foundation Case Study Solution has particular strengths that can be used to decrease the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Danish National Advanced Technology Foundation Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position allows the business to think about several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weaknesses of Danish National Advanced Technology Foundation Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, impacting Danish National Advanced Technology Foundation Case Study Help as well, but the growth could be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has presented certain dangers to Danish National Advanced Technology Foundation Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Danish National Advanced Technology Foundation Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors 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 certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly overall profits of Danish National Advanced Technology Foundation Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in attracting a big number of clients at a prospective price.
Along with it, the second chart which shows the yearly development in the Danish National Advanced Technology Foundation Case Study Analysis overall assets, shows that the business is rather efficient in including worth to its possessions through its revenues. The growth in assets shows that the total value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of overall profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting Danish National Advanced Technology Foundation Case Study Help organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology together with the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Danish National Advanced Technology Foundation Case Study Analysis includes the concerns of environmental 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 used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Danish National Advanced Technology Foundation Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest 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 market 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 costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Danish National Advanced Technology Foundation Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Danish National Advanced Technology Foundation Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the decreasing industry development. Introduction of digital publishing might prove to be an instant service with low quantity of danger for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the customer need, the possible markets, the government regulations and the information associated with the rivals provided in the market. After that, the company needs to choose one possible sector for its preliminary offering. It must gather research that how it might separate its digital publishing from the existing competitors' items. After all the actions above the business should choose the preliminary offering. If the initial offering shows a success, the business must opt for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, showing a risk to the business's long term existence, but the situation can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
