Doug Cook Acquiring A Business B Case Study Solution and Analysis
Introduction
Doug Cook Acquiring A Business B Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Doug Cook Acquiring A Business B Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used 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
Doug Cook Acquiring A Business B Case Study Analysis has certain strengths that can be made use of to reduce the risks, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Doug Cook Acquiring A Business B Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the company to consider a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restrictions for the business in executing its development program. The weaknesses of Doug Cook Acquiring A Business B Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Doug Cook Acquiring A Business B Case Study Analysis also, but the growth could be revived by availing particular chances presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned particular risks to Doug Cook Acquiring A Business B Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Doug Cook Acquiring A Business B Case Study Analysis due to the customer shift towards digital 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 acquire a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be computed. The total monetary efficiency of the company might be examined by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Doug Cook Acquiring A Business B Case Study Help is growing and the business is rather effective in drawing in a large number of customers at a potential cost.
Together with it, the 2nd graph which shows the yearly development in the Doug Cook Acquiring A Business B Case Study Analysis overall possessions, shows that the company is quite effective in adding value to its possessions through its incomes. The growth in possessions shows that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided data could be the analysis concerning the distribution of total earnings of the company. 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 company might move towards other company sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Doug Cook Acquiring A Business B Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total company at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out informative products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Doug Cook Acquiring A Business B Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Doug Cook Acquiring A Business B Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required 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 Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the threat of replacement 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 Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along 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 Doug Cook Acquiring A Business B Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Doug Cook Acquiring A Business B Case Study Solution consist of;.
• 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 large time period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a significant concentrate on academic publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Doug Cook Acquiring A Business B Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate service to prevent the declining industry growth. The company could 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 needs to first collects the data connected to the consumer demand, the potential markets, the government policies and the data connected to the rivals provided in the market. After that, the company ought to choose one potential section for its initial offering. It should collect research study that how it might differentiate its digital publishing from the existing rivals' products. After all the actions above the company ought to go for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a threat to the business's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
