Dows Acquisition Program Case Study Solution and Analysis
Intro
Dows Acquisition Program Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Dows Acquisition Program Case Study Solution in particular. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns 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 used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Dows Acquisition Program Case Study Help has particular strengths that can be made use of to minimize the threats, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Dows Acquisition Program Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the business to consider several development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restraints for the business in implementing its development program. The weak points of Dows Acquisition Program Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Dows Acquisition Program Case Study Analysis as well, however the growth could be restored by availing specific chances presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using 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 reduce its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has postured specific hazards to Dows Acquisition Program Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Dows Acquisition Program Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly total incomes of Dows Acquisition Program Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is rather efficient in bring in a big number of clients at a potential cost.
Along with it, the second chart which reveals the yearly growth in the Dows Acquisition Program Case Study Solution total possessions, reveals that the company is rather efficient in adding worth to its possessions through its profits. The development in assets shows that the total value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the circulation of overall revenues of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Dows Acquisition Program Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Dows Acquisition Program Case Study Analysis includes the issues of environmental 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 used while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Dows Acquisition Program 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 general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Dows Acquisition Program Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Dows Acquisition Program Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total profits 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 opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
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 demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. Therefore, intro of digital publishing could prove to be an instant solution with low quantity of danger for the business. Nevertheless, the business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the consumer demand, the possible markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, showing a risk to the company's long term existence, but the situation can be controlled by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
