Danshui Plant 2 Case Study Solution and Analysis
Introduction
Danshui Plant 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing information and communication services. Significant company sectors of the business include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports etc. Danshui Plant 2 Case Study Analysis has ended up being a specialized details company and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Danshui Plant 2 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised several 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 capabilities of the company could be utilized 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
Danshui Plant 2 Case Study Analysis has specific strengths that can be made use of to reduce the hazards, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Danshui Plant 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position permits the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase restraints for the company in executing its development program. The weaknesses of Danshui Plant 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining because 2008, impacting Danshui Plant 2 Case Study Help as well, but the development could be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing 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 decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has postured certain hazards to Danshui Plant 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Danshui Plant 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors 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 certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual overall profits of Danshui Plant 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in bring in a large number of clients at a possible rate.
Together with it, the second chart which reveals the annual growth in the Danshui Plant 2 Case Study Help total assets, reveals that the company is quite efficient in including value to its possessions through its incomes. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the circulation of total earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces impacting Danshui Plant 2 Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Danshui Plant 2 Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact 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 financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Danshui Plant 2 Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on specific sites. The changing consumer choices towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Danshui Plant 2 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Danshui Plant 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a major concentrate on academic 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 could wean the market share of Danshui Plant 2 Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor 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 organisation scale. It is also one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate option to avoid the declining market growth. Intro of digital publishing might show to be an immediate service with low quantity of risk for the company. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first gathers the data connected to the customer need, the prospective markets, the government guidelines and the data associated with the rivals presented in the market. After that, the business needs to choose one prospective sector for its preliminary offering. It ought to gather research study that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the business must go for the preliminary offering. The business needs to go for the other markets if the initial offering proves a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, showing a risk to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
