Dragonfly Corporation 3 Case Study Solution and Analysis
Dragonfly Corporation 3 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Dragonfly Corporation 3 Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns 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 business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Dragonfly Corporation 3 Case Study Help has particular strengths that can be made use of to reduce the threats, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Dragonfly Corporation 3 Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position allows the company to consider numerous advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase restraints for the business in implementing its advancement program. The weaknesses of Dragonfly Corporation 3 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is declining since 2008, impacting Dragonfly Corporation 3 Case Study Help as well, but the development could be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has presented particular risks to Dragonfly Corporation 3 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Dragonfly Corporation 3 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry along with presence of high competition increases the hazard of losing the customer base.
The business has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be computed. The general financial performance of the company might be evaluated by using the charts provided in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Dragonfly Corporation 3 Case Study Help is growing and the business is quite efficient in attracting a a great deal of consumers at a possible rate.
Together with it, the 2nd chart which reveals the yearly development in the Dragonfly Corporation 3 Case Study Help overall assets, reveals that the business is rather efficient in including worth to its possessions through its revenues. The development in assets shows that the total value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the distribution of overall revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a prospective development to attain its future development objective.
PESTEL analysis could be performed to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces impacting Dragonfly Corporation 3 Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Dragonfly Corporation 3 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Dragonfly Corporation 3 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Dragonfly Corporation 3 Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an immediate solution to prevent the declining industry growth. For that reason, introduction of digital publishing might show to be an immediate service with low amount of danger for the business. However, the business could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first gathers the data connected to the customer need, the potential markets, the government guidelines and the data associated with the competitors presented in the market. After that, the company should choose one possible section for its initial offering. It ought to collect research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the company must go for the preliminary offering. If the initial offering proves a success, the company should choose the other markets. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining given that 2008, showing a risk to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.