Economics Project Real Estate Case Study Solution and Analysis
Intro
Economics Project Real Estate Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Economics Project Real Estate Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns 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 pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Economics Project Real Estate Case Study Help has specific strengths that can be utilized to lower the risks, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Economics Project Real Estate Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of Economics Project Real Estate Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining because 2008, affecting Economics Project Real Estate Case Study Solution as well, but the growth could be revived by availing specific chances presented in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain risks to Economics Project Real Estate Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Economics Project Real Estate Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. The overall financial performance of the company might be examined by using the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual total incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Economics Project Real Estate Case Study Solution is growing and the company is quite effective in drawing in a large number of clients at a potential rate.
In addition to it, the second chart which reveals the yearly development in the Economics Project Real Estate Case Study Help total properties, reveals that the business is quite effective in adding value to its possessions through its profits. The growth in assets reveals that the total worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis relating to the circulation of total earnings of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Economics Project Real Estate Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Economics Project Real Estate Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. Along with it, the financial policies related to the import of books affect the general organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Economics Project Real Estate Case Study Solution consists of the concerns of ecological communities 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 should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the files presented in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Economics Project Real Estate Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Economics Project Real Estate Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in different market sectors, with a major concentrate on educational publications. CIP serves as a hazard 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 Economics Project Real Estate Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Economics Project Real Estate Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly 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 Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 business segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant option to prevent the declining market development. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to first collects the information related to the customer need, the prospective markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
