Dragonfly Corporation 3 Case Study Solution and Analysis
Introduction
Dragonfly Corporation 3 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and Dragonfly Corporation 3 Case Study Help in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation 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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Dragonfly Corporation 3 Case Study Solution has specific strengths that can be made use of to decrease the risks, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Dragonfly Corporation 3 Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong financial position enables the business to think about numerous development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Dragonfly Corporation 3 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, affecting Dragonfly Corporation 3 Case Study Analysis as well, however the growth might be restored by availing certain chances provided in the market. The marketplace opportunities 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 an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has presented particular hazards to Dragonfly Corporation 3 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Dragonfly Corporation 3 Case Study Solution due to the consumer shift towards virtual 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 competitors can get a strong customer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market together with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total profits of Dragonfly Corporation 3 Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a large number of consumers at a prospective price.
Along with it, the 2nd graph which shows the yearly development in the Dragonfly Corporation 3 Case Study Help total possessions, reveals that the business is quite efficient in adding value to its assets through its profits. The development in properties shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis relating to the circulation of total earnings of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Dragonfly Corporation 3 Case Study Solution company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Dragonfly Corporation 3 Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Dragonfly Corporation 3 Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs 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 rivals of Dragonfly Corporation 3 Case Study Solution include;.
• Chemical Market 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Dragonfly Corporation 3 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant service to prevent the declining market growth. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to initially collects the data related to the customer need, the possible markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering shows 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.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a hazard to the company's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
