Digital Media Group The Shanghai Bid Case Study Solution and Analysis
Introduction
Digital Media Group The Shanghai Bid Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing information and interaction services. Significant service segments of the company include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant products include books, periodicals, online media, exhibits, research study reports and so on. Digital Media Group The Shanghai Bid Case Study Solution has actually become a specialized information company and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Digital Media Group The Shanghai Bid Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 scenario? 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Digital Media Group The Shanghai Bid Case Study Solution has particular strengths that can be used to decrease the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Digital Media Group The Shanghai Bid Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the business to think about numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restraints for the business in executing its development program. The weak points of Digital Media Group The Shanghai Bid Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, affecting Digital Media Group The Shanghai Bid Case Study Solution as well, however the growth could be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually postured certain hazards to Digital Media Group The Shanghai Bid Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Digital Media Group The Shanghai Bid Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors 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 certain methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly overall incomes of Digital Media Group The Shanghai Bid Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in bring in a large number of clients at a prospective cost.
Along with it, the 2nd chart which shows the yearly development in the Digital Media Group The Shanghai Bid Case Study Solution overall properties, reveals that the business is quite effective in including worth to its assets through its profits. The growth in possessions shows that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might 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 published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the overall political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Digital Media Group The Shanghai Bid Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the total service at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful materials and so on. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Digital Media Group The Shanghai Bid Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Digital Media Group The Shanghai Bid Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the files provided in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Digital Media Group The Shanghai Bid Case Study Analysis include the providers of the paper for publishing files. 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 purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Digital Media Group The Shanghai Bid Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases similar type of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in numerous market sections, with a significant focus on instructional publications. CIP acts as a danger 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 Digital Media Group The Shanghai Bid Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an instant service to prevent the decreasing market development. For that reason, introduction of digital publishing might prove to be an instant solution with low quantity of risk for the business. Nevertheless, the business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially collects the information associated with the consumer demand, the possible markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the business ought to choose one possible segment for its initial offering. It ought to collect research that how it could separate its digital publishing from the existing rivals' products. The actions above the business should go for the initial offering. The business must go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, revealing a risk to the business's long term presence, but the situation can be controlled by thinking about an advancement 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 prevent the risk of failure for entrance in the brand-new markets.
