Discussion Posting Case Study Solution and Analysis
Introduction
Discussion Posting Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing details and interaction services. Major service sections of the company consist of; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. Discussion Posting Case Study Help has actually become a specialized information company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Discussion Posting Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised a number of 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 abilities of the company 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
Discussion Posting Case Study Analysis has particular strengths that can be used to minimize the threats, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Discussion Posting Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the business to think about a number of advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Discussion Posting Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining since 2008, impacting Discussion Posting Case Study Solution as well, but the growth might be revived by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has positioned certain risks to Discussion Posting Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Discussion Posting Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall profits of Discussion Posting Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in attracting a large number of clients at a prospective price.
In addition to it, the 2nd chart which reveals the annual development in the Discussion Posting Case Study Help total properties, shows that the company is rather effective in adding value to its possessions through its profits. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis relating to the distribution of overall revenues of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous 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 business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces affecting Discussion Posting Case Study Help organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful products etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Discussion Posting Case Study Help. However, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Discussion Posting Case Study Analysis consists of the concerns of ecological 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 harmful for the environment.
Legal.
Legal guidelines 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 Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Discussion Posting Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier 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 marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Discussion Posting Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in numerous market sectors, with a major concentrate on instructional publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Discussion Posting Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Discussion Posting Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an instant service to avoid the decreasing market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must initially gathers the data related to the customer demand, the potential markets, the government regulations and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a risk to the business's long term existence, however the circumstance can be managed by thinking about an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
