Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Solution and Analysis
Intro
Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change 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 important experience, technical resources and the abilities of the business could be made use of 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
Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Solution has certain strengths that can be made use of to reduce the hazards, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong monetary position allows the company to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restrictions for the business in executing its development program. The weak points of Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Analysis as well, but the development might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce 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 growth towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has presented particular threats to Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry along with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual overall profits of Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in bring in a large number of consumers at a possible cost.
Together with it, the 2nd graph which shows the annual development in the Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Help total assets, shows that the business is rather efficient in including value to its assets through its revenues. The growth in possessions shows that the total worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis regarding the circulation of overall revenues of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Analysis includes the concerns of ecological communities over the usage 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 hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files presented in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Evaluating The Effect Of Technology Risk On Nigeria Economy Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest 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 purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the business 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 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective 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 introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an instant solution to prevent the decreasing industry growth. 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 product portfolio, the business needs to initially gathers the information related to the customer demand, the potential markets, the government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a risk to the company's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
