Dows Acquisition Program Case Study Solution and Analysis
Dows Acquisition Program Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Dows Acquisition Program Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities 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?
Dows Acquisition Program Case Study Analysis has certain strengths that can be used to lower the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Dows Acquisition Program Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position permits the business to think about a number of advancement chances with no fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of Dows Acquisition Program Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing industry is declining because 2008, impacting Dows Acquisition Program Case Study Solution as well, however the development could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually posed certain hazards to Dows Acquisition Program Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Dows Acquisition Program Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competition increases the threat of losing the customer base.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP might not be calculated. Nevertheless, the general monetary performance of the company might be examined by utilizing the charts given up the case Appendices. It might be analyzed from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Dows Acquisition Program Case Study Help is growing and the business is rather efficient in drawing in a a great deal of customers at a potential rate.
In addition to it, the 2nd graph which reveals the yearly development in the Dows Acquisition Program Case Study Solution overall assets, reveals that the company is quite efficient in including worth to its properties through its earnings. The growth in assets reveals that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis relating to the circulation of total incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a potential development to attain its future development goal.
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Dows Acquisition Program Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Dows Acquisition Program Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the total company at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful 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 Dows Acquisition Program Case Study Help. However, the consumer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental forces affecting Dows Acquisition Program Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Dows Acquisition Program Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the buyers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Dows Acquisition Program Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks third and second in various market sectors, with a major focus on academic publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Dows Acquisition Program Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the declining market development. For that reason, introduction of digital publishing might show to be an immediate solution with low quantity of danger for the company. The company might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company ought to first gathers the information related to the consumer need, the possible markets, the government regulations and the information connected to the rivals presented in the market. After that, the company ought to choose one prospective section for its initial offering. It must collect research that how it might separate its digital publishing from the existing competitors' items. After all the actions above the business should opt for the initial offering. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
The growth of the publishing market is declining since 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.