E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Solution and Analysis
Introduction
E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help is the largest 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 comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Solution has certain strengths that can be utilized to decrease the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position allows the company to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, 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 certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help as well, however the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually posed particular hazards to E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly total incomes of E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is quite efficient in drawing in a big number of customers at a prospective cost.
Together with it, the 2nd graph which shows the annual development in the E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help overall assets, reveals that the company is quite efficient in adding worth to its possessions through its profits. The growth in properties shows that the total worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the circulation of total earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the various 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).
Political.
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the general organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out helpful products and so on. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Solution. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the released documents is the documents presented in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
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 rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market 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 files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks second and third in different market segments, 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 focused on digital publishing and could wean the market share of E I Du Pont De Nemours Co Titanium Dioxide 2 Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business need an instant option to avoid the decreasing market development. Intro of digital publishing might show to be an immediate option with low amount of risk for the business. However, the company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must first collects the information related to the customer demand, the prospective markets, the government regulations and the information related to the competitors provided in the market. After that, the business should decide one possible sector for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' products. The steps above the company should go for the initial offering. The company ought to go for the other markets if the preliminary offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, revealing a threat to the company's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
