Effect Of Increasing Minimum Wage Rate Case Study Solution and Analysis
Introduction
Effect Of Increasing Minimum Wage Rate Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing details and interaction services. Major business segments of the company include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its major items include books, regulars, online media, exhibitions, research reports and so on. Effect Of Increasing Minimum Wage Rate Case Study Analysis has actually ended up being a specialized details supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and Effect Of Increasing Minimum Wage Rate Case Study Analysis in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Effect Of Increasing Minimum Wage Rate Case Study Solution has particular strengths that can be used to decrease the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Effect Of Increasing Minimum Wage Rate Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the company to consider several development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restraints for the business in executing its advancement program. The weak points of Effect Of Increasing Minimum Wage Rate Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Effect Of Increasing Minimum Wage Rate Case Study Solution as well, however the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain hazards to Effect Of Increasing Minimum Wage Rate Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Effect Of Increasing Minimum Wage Rate Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. The general financial efficiency of the business could be evaluated by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Effect Of Increasing Minimum Wage Rate Case Study Analysis is growing and the business is quite efficient in bring in a large number of consumers at a potential rate.
Along with it, the 2nd chart which reveals the annual development in the Effect Of Increasing Minimum Wage Rate Case Study Analysis overall assets, shows that the company is quite effective in adding value to its possessions through its incomes. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the distribution of overall profits of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful products and so on. China has the highest population in the world with a high population development, revealing the increasing number of consumers of the Effect Of Increasing Minimum Wage Rate Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Effect Of Increasing Minimum Wage Rate Case Study Analysis consists of the issues of ecological neighborhoods 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 damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Effect Of Increasing Minimum Wage Rate Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer 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 purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Effect Of Increasing Minimum Wage Rate Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market sectors, with a significant concentrate on instructional publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Effect Of Increasing Minimum Wage Rate Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Effect Of Increasing Minimum Wage Rate Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant solution to prevent the declining industry development. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first gathers the information related to the consumer demand, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a danger to the business's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
