El Mawardy Jewelry Expansion During A Recession Case Study Solution and Analysis
Intro
El Mawardy Jewelry Expansion During A Recession Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and communication services. Significant service sectors of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibits, research reports and so on. El Mawardy Jewelry Expansion During A Recession Case Study Help has ended up being a specialized information service provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, El Mawardy Jewelry Expansion During A Recession Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 capabilities of the business 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
El Mawardy Jewelry Expansion During A Recession Case Study Analysis has specific strengths that can be made use of to reduce the threats, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of El Mawardy Jewelry Expansion During A Recession Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of El Mawardy Jewelry Expansion During A Recession Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company 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 should propose specific growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting El Mawardy Jewelry Expansion During A Recession Case Study Solution as well, however the growth could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed specific hazards to El Mawardy Jewelry Expansion During A Recession Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of El Mawardy Jewelry Expansion During A Recession Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual overall profits of El Mawardy Jewelry Expansion During A Recession Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in bring in a big number of clients at a potential price.
In addition to it, the second chart which reveals the yearly development in the El Mawardy Jewelry Expansion During A Recession Case Study Help overall assets, reveals that the business is rather effective in adding value to its possessions through its profits. The growth in properties shows that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information might be the analysis relating to the circulation of overall incomes of the company. Huge part of the revenues 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 business segments with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the efficiency of the company and the recent 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 might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting El Mawardy Jewelry Expansion During A Recession Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting El Mawardy Jewelry Expansion During A Recession Case Study Solution consists of the issues of ecological neighborhoods 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 utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative items for the released files is the documents presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the danger of alternative for the market.
Competitive Competition.
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 competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the El Mawardy Jewelry Expansion During A Recession Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry 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 documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of El Mawardy Jewelry Expansion During A Recession Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as El Mawardy Jewelry Expansion During A Recession Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an immediate option to prevent the declining industry growth. Introduction of digital publishing might show to be an immediate option with low amount of danger for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially collects the information related to the customer demand, the potential markets, the government regulations and the data related to the competitors presented in the market. After that, the company should choose one prospective sector for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing rivals' items. After all the steps above the company must opt for the preliminary offering. The business must go for the other markets if the preliminary offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a hazard to the company's long term presence, but the scenario can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
