Doug Cook Acquiring A Business A Case Study Solution and Analysis
Introduction
Doug Cook Acquiring A Business A Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; gathering info, processing information and interaction services. Significant company sections of the business consist of; books, periodicals, consultancy and distribution. The business has a large product portfolio and its major products include books, periodicals, online media, exhibitions, research study reports etc. Doug Cook Acquiring A Business A Case Study Analysis has actually become a specialized details company and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Doug Cook Acquiring A Business A Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement 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 important experience, technical resources and the capabilities of the company could be made use of 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
Doug Cook Acquiring A Business A Case Study Help has certain strengths that can be used to minimize the dangers, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Doug Cook Acquiring A Business A Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong financial position enables the company to consider several development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Doug Cook Acquiring A Business A Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting Doug Cook Acquiring A Business A Case Study Solution also, however the development could be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed particular threats to Doug Cook Acquiring A Business A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Doug Cook Acquiring A Business A Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be determined. However, the overall monetary efficiency of the business could be examined by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Doug Cook Acquiring A Business A Case Study Analysis is growing and the company is quite effective in bring in a large number of customers at a possible price.
Along with it, the second chart which reveals the annual growth in the Doug Cook Acquiring A Business A Case Study Analysis overall possessions, shows that the company is rather efficient in adding worth to its possessions through its earnings. The development in possessions reveals that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis regarding the circulation of overall earnings of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Doug Cook Acquiring A Business A 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 affecting the publishing sector in general and the Doug Cook Acquiring A Business A Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books affect the total business at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Doug Cook Acquiring A Business A Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized 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 Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the documents presented in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Doug Cook Acquiring A Business A Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Doug Cook Acquiring A Business A Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in different market segments, with a major concentrate on educational 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 Doug Cook Acquiring A Business A Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Doug Cook Acquiring A Business A Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential 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 present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant solution to avoid the declining industry growth. The company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first collects the information related to the customer demand, the possible markets, the federal government policies and the information related to the competitors provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
