Diamond Developers Case Study Solution and Analysis
Introduction
Diamond Developers Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Diamond Developers Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for 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 Case Study Solution has particular strengths that can be made use of to decrease the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Diamond Developers Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position permits the company to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restrictions for the business in implementing 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 company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Diamond Developers Case Study Solution as well, but the development could be restored by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has posed specific hazards to Diamond Developers Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Diamond Developers Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be computed. Nevertheless, the overall financial performance of the business could be examined by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Diamond Developers Case Study Solution is growing and the company is rather effective in drawing in a a great deal of consumers at a possible rate.
In addition to it, the second graph which shows the annual development in the Diamond Developers Case Study Solution overall properties, reveals that the company is quite effective in including worth to its properties through its revenues. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the distribution of overall revenues of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Diamond Developers Case Study Analysis company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Diamond Developers Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered 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 new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files provided in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Diamond Developers Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Diamond Developers Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks second and third in numerous market sectors, with a major focus on academic publications. CIP functions as a hazard 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 easily in the current market scenario.
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 sixth in the state-owned publishers in terms of business scale. It is also one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible 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 introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the declining industry development. For that reason, intro of digital publishing might show to be an instant option with low amount of risk for the company. The business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the data associated with the customer demand, the possible markets, the federal government guidelines and the data related to the competitors provided in the market. After that, the company must choose one possible segment for its preliminary offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the company should go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a risk to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
