Doug Cook Acquiring A Business C Case Study Solution and Analysis
Introduction
Doug Cook Acquiring A Business C Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing information and interaction services. Major service sectors of the business consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. Doug Cook Acquiring A Business C Case Study Help has actually become a specialized details supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Doug Cook Acquiring A Business C Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement 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 C Case Study Help has particular strengths that can be made use of to decrease the dangers, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Doug Cook Acquiring A Business C Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong monetary position enables the company to consider several development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Doug Cook Acquiring A Business C Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business 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 needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Doug Cook Acquiring A Business C Case Study Solution as well, however the growth might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has postured certain dangers to Doug Cook Acquiring A Business C Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Doug Cook Acquiring A Business C Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific methods like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP might not be determined. The total financial performance of the business might be examined by using the charts offered in the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Doug Cook Acquiring A Business C Case Study Analysis is growing and the company is rather efficient in drawing in a large number of consumers at a possible cost.
Together with it, the 2nd chart which shows the annual growth in the Doug Cook Acquiring A Business C Case Study Solution total possessions, reveals that the business is rather efficient in adding value to its properties through its profits. The growth in assets shows that the total worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis concerning the distribution of overall incomes of the business. 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 could move towards other service sectors with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading useful products etc. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Doug Cook Acquiring A Business C Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Doug Cook Acquiring A Business C Case Study Solution includes the issues of ecological neighborhoods over the usage 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the virtual libraries on particular sites. The changing customer choices towards digital learning increase the risk of replacement for the market.
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 etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Doug Cook Acquiring A Business C Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market 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 competitors of Doug Cook Acquiring A Business C Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand 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 accomplish its future development. As the preferences are moving towards digital publishing and the company need an instant service to prevent the declining market growth. For that reason, introduction of digital publishing could show to be an instant solution with low quantity of threat for the company. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to initially gathers the data related to the customer demand, the possible markets, the government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a hazard to the business's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
