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Diamond Developers Measuring Sustainability 2 Case Solution

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Diamond Developers Measuring Sustainability 2 Case Study Solution and Analysis


Introduction

Diamond Developers Measuring Sustainability 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Important Issues

Although, Diamond Developers Measuring Sustainability 2 Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing market in general and CMP in particular. These factors include;

• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
Executive Summary
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Diamond Developers Measuring Sustainability 2 Case Study Help has certain strengths that can be utilized to minimize the threats, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;

• The long term experience of Diamond Developers Measuring Sustainability 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the business to consider several development chances with no worry of raising fund externally.

Weaknesses

Along with the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its advancement program. The weak points of Diamond Developers Measuring Sustainability 2 Case Study Help are offered as follows;

• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to avoid its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is declining considering that 2008, affecting Diamond Developers Measuring Sustainability 2 Case Study Analysis also, but the growth might be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;

• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.

Hazards

The changing macro trends in the market and increasing competition in the publishing industry has posed certain hazards to Diamond Developers Measuring Sustainability 2 Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Diamond Developers Measuring Sustainability 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market along with presence of high competition increases the hazard of losing the consumer base.

Monetary Analysis.
Swot Analysis
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. Nevertheless, the general financial efficiency of the company might be examined by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Diamond Developers Measuring Sustainability 2 Case Study Solution is growing and the company is quite effective in attracting a large number of customers at a potential price.

Along with it, the second graph which reveals the yearly development in the Diamond Developers Measuring Sustainability 2 Case Study Help overall properties, shows that the business is rather effective in adding value to its assets through its revenues. The development in possessions shows that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).

Another financial analysis of the business using the offered data might be the analysis regarding the distribution of total incomes of the company. Huge 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 service segments with a possible growth to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis could be performed to discover the numerous external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.

Affordable.

Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population development, the consumer's choices towards checking out helpful materials etc. China has the greatest population worldwide with a high population development, showing the increasing number of consumers of the Diamond Developers Measuring Sustainability 2 Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.

Technological.

Technological forces affecting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Diamond Developers Measuring Sustainability 2 Case Study Solution consists of the concerns of environmental communities over the usage 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 hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.

Industry Analysis (Porter's Five Forces Design).

Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.

Threat of New Entrants.

Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. However, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.

Danger of Replacement.

Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the industry.

Competitive Rivalry.

Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along 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 Diamond Developers Measuring Sustainability 2 Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.

Bargaining Power of Buyer.

Bargaining power of purchaser in the publishing industry 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 costs.

Rivals Analysis.

CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Diamond Developers Measuring Sustainability 2 Case Study Analysis consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis one of the close competitors of CMP. Founded in the same period, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sectors, with a significant concentrate on academic publications. CIP functions as a danger 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 marketplace share of Diamond Developers Measuring Sustainability 2 Case Study Solution quickly in the current market scenario.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing market 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 variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its products in the market.

Suggestions

As the choices are moving towards digital publishing and the business need an instant option to prevent the decreasing industry growth. The business could likewise consider the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its product portfolio, the company ought to initially collects the data related to the consumer demand, the potential markets, the government policies and the information related to the rivals provided in the market. After that, the business needs to decide one possible segment for its preliminary offering. It should 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 initial offering. If the preliminary offering shows a success, the company needs to opt for the other markets. In this way the company would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing industry is declining since 2008, revealing a risk to the business's long term presence, but the scenario can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.

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