Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution and Analysis
Introduction
Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing details and communication services. Significant service segments of the business consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its major items include books, regulars, online media, exhibits, research reports etc. Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution has actually ended up being a specialized details service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP 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 general and Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution in specific. These aspects consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Help has specific strengths that can be utilized to decrease the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position permits the company to consider numerous advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution too, but the growth might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has presented particular risks to Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market together with presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. However, the general monetary efficiency of the business might be examined by utilizing the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Help is growing and the company is rather effective in drawing in a a great deal of consumers at a possible cost.
Along with it, the 2nd graph which shows the yearly growth in the Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Help total possessions, shows that the business is quite effective in adding value to its properties through its revenues. The development in properties shows that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis concerning the distribution of overall incomes of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general 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 existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Evaluating The Effect Of Technology Risk On Nigeria Economy 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an instant service to avoid the declining industry development. For that reason, intro of digital publishing might prove to be an immediate option with low amount of threat for the business. However, the company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first collects the information associated with the consumer demand, the possible markets, the federal government regulations and the data connected to the competitors presented in the market. After that, the company needs to decide one potential section for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' products. The actions above the company should go for the preliminary offering. The business should go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a danger to the company's long term presence, however the scenario can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
