Euro Zone Convergence Divergenceand Then What Case Study Solution and Analysis
Intro
Euro Zone Convergence Divergenceand Then What Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Euro Zone Convergence Divergenceand Then What Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous 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 capabilities of the company 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
Euro Zone Convergence Divergenceand Then What Case Study Solution has specific strengths that can be utilized to reduce the risks, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Euro Zone Convergence Divergenceand Then What Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position permits the business to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Euro Zone Convergence Divergenceand Then What Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods 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 attain long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Euro Zone Convergence Divergenceand Then What Case Study Help too, but the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured certain hazards to Euro Zone Convergence Divergenceand Then What Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Euro Zone Convergence Divergenceand Then What Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total profits of Euro Zone Convergence Divergenceand Then What Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in drawing in a large number of customers at a potential cost.
Together with it, the second graph which shows the annual development in the Euro Zone Convergence Divergenceand Then What Case Study Solution total assets, shows that the business is rather effective in including value to its assets through its profits. The development in properties reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis regarding the distribution of total earnings of the company. Huge 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 company might move towards other service sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading helpful products etc. China has the greatest population in the world with a high population growth, showing the increasing number of consumers of the Euro Zone Convergence Divergenceand Then What Case Study Solution. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Euro Zone Convergence Divergenceand Then What Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the virtual libraries on certain sites. The changing customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Euro Zone Convergence Divergenceand Then What Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Euro Zone Convergence Divergenceand Then What Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in various market segments, with a major concentrate on instructional publications. CIP functions as a danger 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 marketplace share of Euro Zone Convergence Divergenceand Then What Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry development. The company could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should initially collects the information associated with the customer need, the prospective markets, the federal government policies and the information connected to the rivals provided in the market. After that, the company should decide one potential segment for its preliminary offering. It must collect research study that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the business should opt for the initial offering. If the preliminary offering proves a success, the company ought to choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a risk to the business's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
