Diamond Developers Case Study Solution and Analysis
Diamond Developers Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in general and Diamond Developers Case Study Help in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Diamond Developers Case Study Help has particular strengths that can be made use of to reduce the risks, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Diamond Developers Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position permits the business to think about a number of advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has specific weak points which could increase restraints for the company in executing its advancement program. The weak points of Diamond Developers Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing industry is declining given that 2008, impacting Diamond Developers Case Study Solution as well, however the development could be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned specific risks to Diamond Developers Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Diamond Developers Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors 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 certain methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the threat of losing the customer base.
Due to lack of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total earnings of Diamond Developers Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is rather effective in attracting a large number of customers at a possible price.
In addition to it, the 2nd graph which shows the annual growth in the Diamond Developers Case Study Solution overall assets, shows that the company is rather effective in adding value to its assets through its incomes. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis concerning the circulation of total earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a prospective development to attain its future advancement objective.
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful materials and so on. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the Diamond Developers Case Study Help. However, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Ecological forces impacting Diamond Developers Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable 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 guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized 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.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Diamond Developers Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Diamond Developers Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a significant focus on instructional publications. 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 might wean the marketplace share of Diamond Developers Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an instant solution to prevent the decreasing industry growth. For that reason, introduction of digital publishing could show to be an immediate solution with low quantity of threat for the company. However, the business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should initially collects the information associated with the customer demand, the possible markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the business ought to choose one possible section for its initial offering. It must gather research study that how it could distinguish its digital publishing from the existing competitors' items. The actions above the business need to go for the preliminary offering. If the initial offering shows a success, the company should opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, revealing a threat to the business's long term presence, but the situation can be controlled by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.