Economics Project Case Study Solution and Analysis
Intro
Economics Project Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Economics Project Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Economics Project Case Study Solution has certain strengths that can be used to reduce the threats, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Economics Project Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong monetary position allows the company to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase constraints for the company in implementing its development program. The weaknesses of Economics Project Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, 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 development. It ought to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Economics Project Case Study Analysis too, however the growth might be restored by availing particular chances presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Economics Project Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Economics Project Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total revenues of Economics Project Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in drawing in a big number of clients at a prospective rate.
Together with it, the 2nd chart which reveals the yearly growth in the Economics Project Case Study Solution total possessions, reveals that the business is rather effective in including worth to its properties through its incomes. The development in possessions shows that the overall value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the distribution of overall profits of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Economics Project Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the digital libraries on specific websites. The changing customer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Economics Project Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason 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 purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Economics Project Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and third in different market sectors, with a major focus on academic publications. CIP functions as a risk 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 Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the popular gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present 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 organisation sections to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the decreasing market growth. Introduction of digital publishing could show to be an immediate service with low quantity of threat for the business. The business might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially collects the information related to the consumer demand, the prospective markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a risk to the business's long term existence, but the situation can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
