European Union The Road To Lisbon Case Study Solution and Analysis
Introduction
European Union The Road To Lisbon Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and European Union The Road To Lisbon Case Study Solution in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 abilities of the company 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
European Union The Road To Lisbon Case Study Solution has certain strengths that can be made use of to lower the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of European Union The Road To Lisbon Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position enables the business to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase restrictions for the company in implementing its development program. The weak points of European Union The Road To Lisbon Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting European Union The Road To Lisbon Case Study Help also, however the development might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific dangers to European Union The Road To Lisbon Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of European Union The Road To Lisbon Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be calculated. The total financial performance of the company might be analyzed by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of European Union The Road To Lisbon Case Study Analysis is growing and the business is quite effective in attracting a a great deal of customers at a potential rate.
Along with it, the second graph which reveals the annual development in the European Union The Road To Lisbon Case Study Analysis overall properties, reveals that the company is quite effective in including worth to its assets through its profits. The development in properties shows that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis relating to the circulation of total earnings of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the efficiency of the company and the recent 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 could have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting European Union The Road To Lisbon Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on certain websites. The changing customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the European Union The Road To Lisbon Case Study Analysis 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 supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of European Union The Road To Lisbon Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 service sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant service to prevent the decreasing market growth. Therefore, introduction of digital publishing might prove to be an instant option with low quantity of risk for the business. However, the business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must first gathers the data connected to the customer need, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. After that, the company needs to choose one potential section for its preliminary offering. It must gather research study that how it could separate its digital publishing from the existing rivals' items. The steps above the company need to go for the initial offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, revealing a danger to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
