Dragonfly Case Study Solution and Analysis
Dragonfly Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Dragonfly Case Study Help in specific. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation 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 scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Dragonfly Case Study Help has certain strengths that can be used to lower the dangers, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Dragonfly Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong financial position enables the company to think about a number of advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which might increase restraints for the company in executing its development program. The weaknesses of Dragonfly Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
The development of the publishing market is decreasing because 2008, affecting Dragonfly Case Study Help as well, but the growth might be revived by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing market has actually postured certain risks to Dragonfly Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Dragonfly Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the danger of losing the customer base.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be determined. Nevertheless, the total monetary efficiency of the company might be examined by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Dragonfly Case Study Analysis is growing and the business is rather efficient in bring in a large number of clients at a possible rate.
In addition to it, the second chart which reveals the annual growth in the Dragonfly Case Study Help total possessions, reveals that the business is quite efficient in including value to its possessions through its incomes. The growth in properties shows that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the distribution of overall earnings of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a possible development to attain its future development objective.
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Dragonfly Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies connected to the import of books affect the general organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out useful products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of consumers of the Dragonfly Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental forces affecting Dragonfly Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk 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. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the files presented in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Dragonfly Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence 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 market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Dragonfly Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a major concentrate on educational publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Dragonfly Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Dragonfly Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competitors 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 business 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 industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the declining market development. Intro of digital publishing could show to be an immediate option with low quantity of risk for the business. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, showing a danger to the business's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.