Eureka Forbes Ltd Growing The Water Purifier Business Case Study Solution and Analysis
Intro
Eureka Forbes Ltd Growing The Water Purifier Business Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering info, processing info and interaction services. Major business sectors of the company include; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports and so on. Eureka Forbes Ltd Growing The Water Purifier Business Case Study Analysis has become a specialized info service provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in general and Eureka Forbes Ltd Growing The Water Purifier Business Case Study Analysis in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Eureka Forbes Ltd Growing The Water Purifier Business Case Study Solution has specific strengths that can be used to decrease the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Eureka Forbes Ltd Growing The Water Purifier Business Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its customers.
• Strong financial position allows the company to consider a number of development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Eureka Forbes Ltd Growing The Water Purifier Business Case Study Solution are provided 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 highly relies over the Chinese markets for its development. It should propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting Eureka Forbes Ltd Growing The Water Purifier Business Case Study Analysis too, but the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has posed certain dangers to Eureka Forbes Ltd Growing The Water Purifier Business Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Eureka Forbes Ltd Growing The Water Purifier Business Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry along with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall incomes of Eureka Forbes Ltd Growing The Water Purifier Business Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a large number of customers at a prospective cost.
In addition to it, the 2nd graph which reveals the yearly growth in the Eureka Forbes Ltd Growing The Water Purifier Business Case Study Analysis total properties, shows that the business is rather effective in including value to its possessions through its incomes. The growth in assets reveals that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis regarding the distribution of total earnings of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Eureka Forbes Ltd Growing The Water Purifier Business Case Study Help organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Eureka Forbes Ltd Growing The Water Purifier Business Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. Together with it, the financial policies connected to the import of books affect the general service at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Eureka Forbes Ltd Growing The Water Purifier Business Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
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 short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Eureka Forbes Ltd Growing The Water Purifier Business Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Eureka Forbes Ltd Growing The Water Purifier Business Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining industry growth. For that reason, introduction of digital publishing could prove to be an instant option with low amount of threat for the business. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business needs to initially collects the information related to the customer need, the possible markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the business should choose one prospective segment for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the company should go for the preliminary offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a hazard to the company's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
