Economics 6 Case Study Solution and Analysis
Intro
Economics 6 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Economics 6 Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised several 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 company could be used 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
Economics 6 Case Study Help has specific strengths that can be made use of to minimize the dangers, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Economics 6 Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the company to consider several development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase constraints for the business in executing its development program. The weak points of Economics 6 Case Study Analysis are provided as follows;
• Despite of being a science and technology 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 should propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Economics 6 Case Study Analysis as well, but the development might be revived by availing certain chances provided in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured certain dangers to Economics 6 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Economics 6 Case Study Analysis due to the consumer shift towards digital 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 get a strong customer base by using specific methods like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry together with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual overall earnings of Economics 6 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in attracting a large number of customers at a potential price.
In addition to it, the 2nd chart which shows the annual growth in the Economics 6 Case Study Analysis total assets, shows that the business is rather efficient in adding value to its possessions through its earnings. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis relating to the circulation of total incomes of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Economics 6 Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Economics 6 Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Economics 6 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Economics 6 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Economics 6 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant solution to prevent the decreasing industry growth. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should initially collects the information related to the consumer demand, the potential markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a hazard to the company's long term presence, however the scenario can be managed by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
