Diamonds In The Data Mine Case Study Solution and Analysis
Introduction
Diamonds In The Data Mine Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Diamonds In The Data Mine Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Diamonds In The Data Mine Case Study Help has particular strengths that can be made use of to lower the risks, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Diamonds In The Data Mine Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position allows the company to think about a number of development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restraints for the business in implementing its development program. The weaknesses of Diamonds In The Data Mine Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, affecting Diamonds In The Data Mine Case Study Help as well, but the growth could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured specific hazards to Diamonds In The Data Mine Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Diamonds In The Data Mine Case Study Analysis due to the customer shift towards digital 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 rivals can get a strong consumer base by using specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with presence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly overall incomes of Diamonds In The Data Mine Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in bring in a large number of clients at a potential price.
Together with it, the second graph which reveals the annual development in the Diamonds In The Data Mine Case Study Analysis overall possessions, shows that the business is quite effective in including worth to its possessions through its revenues. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the distribution of total revenues of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the business and the current 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 substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful products and so on. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Diamonds In The Data Mine Case Study Help. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Diamonds In The Data Mine Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to 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 managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Diamonds In The Data Mine Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier 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 buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence 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. Significant competitors of Diamonds In The Data Mine Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in various market segments, with a significant concentrate on academic publications. CIP functions as a risk 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 Diamonds In The Data Mine Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Diamonds In The Data Mine Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
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 recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an immediate option to prevent the declining market growth. Intro of digital publishing might prove to be an instant service with low amount of risk for the company. However, the business could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first collects the data related to the consumer need, the possible markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a hazard to the company's long term existence, but the scenario can be controlled by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
