Drowling Mountain Case Study Solution and Analysis
Introduction
Drowling Mountain Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and Drowling Mountain Case Study Analysis in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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 advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Drowling Mountain Case Study Solution has specific strengths that can be made use of to lower the hazards, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Drowling Mountain Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong monetary position permits the business to consider several advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase restrictions for the business in executing its development program. The weaknesses of Drowling Mountain Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining given that 2008, affecting Drowling Mountain Case Study Analysis as well, however the growth could be revived by availing certain chances provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has posed specific threats to Drowling Mountain Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Drowling Mountain Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual overall profits of Drowling Mountain Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is quite effective in attracting a big number of customers at a potential price.
In addition to it, the second chart which reveals the yearly growth in the Drowling Mountain Case Study Help overall possessions, reveals that the company is quite efficient in including value to its properties through its profits. The development in assets shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the circulation of total earnings of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting Drowling Mountain Case Study Analysis service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Drowling Mountain Case Study Analysis consists of the concerns of environmental communities 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 needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 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 market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the virtual libraries on particular websites. The changing customer choices towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Drowling Mountain Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence 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 Drowling Mountain Case Study Solution include;.
• Chemical Market 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Drowling Mountain Case Study Help and CIP. It is also one of the prominent players 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 Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an instant option to avoid the declining market development. For that reason, introduction of digital publishing could prove to be an immediate solution with low quantity of threat for the business. The business might 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 must first collects the information related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a risk to the company's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
