Effects Of Rice Subsidies On The Thailand Case Study Solution and Analysis
Introduction
Effects Of Rice Subsidies On The Thailand Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Effects Of Rice Subsidies On The Thailand Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development 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 questions 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 business 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
Effects Of Rice Subsidies On The Thailand Case Study Solution has certain strengths that can be utilized to lower the hazards, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Effects Of Rice Subsidies On The Thailand Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong monetary position enables the company to consider numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase restrictions for the company in executing its development program. The weaknesses of Effects Of Rice Subsidies On The Thailand Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Effects Of Rice Subsidies On The Thailand Case Study Solution as well, but the development could be revived by availing certain opportunities provided in the market. The market chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain threats to Effects Of Rice Subsidies On The Thailand Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Effects Of Rice Subsidies On The Thailand Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual total revenues of Effects Of Rice Subsidies On The Thailand Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is rather effective in drawing in a big number of customers at a prospective rate.
Along with it, the second graph which shows the annual development in the Effects Of Rice Subsidies On The Thailand Case Study Analysis overall possessions, reveals that the company is rather efficient in adding worth to its properties through its earnings. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the distribution of total incomes of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business 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 numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative materials and so on. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Effects Of Rice Subsidies On The Thailand Case Study Analysis. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Effects Of Rice Subsidies On The Thailand Case Study Help includes the issues of ecological communities over the usage 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 damaging for the environment.
Legal.
Legal guidelines 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 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the files presented in the digital libraries on specific websites. The altering customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers 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 likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Effects Of Rice Subsidies On The Thailand Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Effects Of Rice Subsidies On The Thailand Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing 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 possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing market growth. For that reason, intro of digital publishing could show to be an instant service with low quantity of danger for the company. The business could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must first gathers the data connected to the consumer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. After that, the company needs to decide one possible section for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing rivals' items. The actions above the business ought to go for the initial offering. If the preliminary offering shows a success, the business 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 market is decreasing considering that 2008, showing a hazard to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The business could think about introducing 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.
