Diamonds In The Data Mine Case Study Solution and Analysis
Diamonds In The Data Mine Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing information and interaction services. Major organisation sectors of the company include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports etc. Diamonds In The Data Mine Case Study Solution has become a specialized details supplier and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Diamonds In The Data Mine Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement 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 scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Diamonds In The Data Mine Case Study Help has particular strengths that can be utilized to minimize the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Diamonds In The Data Mine Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong financial position permits the company to think about numerous advancement chances without any fear of raising fund externally.
In addition to the strengths, the business has particular weak points which could increase restraints for the business in implementing its development program. The weak points of Diamonds In The Data Mine Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
The growth of the publishing industry is decreasing given that 2008, impacting Diamonds In The Data Mine Case Study Analysis as well, however the growth might be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has positioned specific threats to Diamonds In The Data Mine Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Diamonds In The Data Mine Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market along with presence of high competition increases the hazard of losing the customer base.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. The general financial performance of the business could be examined by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Diamonds In The Data Mine Case Study Help is growing and the business is rather efficient in bring in a a great deal of clients at a prospective price.
Together with it, the 2nd chart which shows the yearly development in the Diamonds In The Data Mine Case Study Solution total possessions, reveals that the company is quite efficient in adding value to its properties through its revenues. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis relating to the distribution of overall earnings of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a potential growth to attain its future advancement objective.
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful materials etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Diamonds In The Data Mine Case Study Help. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Diamonds In The Data Mine Case Study Help includes 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 non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing market 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 Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive rivalry in the publishing industry 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. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Diamonds In The Data Mine Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
CMP operates in an extremely competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Diamonds In The Data Mine Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value 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 brand-new one can lead the company to lose need of its items in the market.
As the choices are moving towards digital publishing and the business require an instant solution to avoid the decreasing industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially gathers the data related to the customer demand, the potential markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, showing a hazard to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.