Exercise 2 Solution Case Study Solution and Analysis
Intro
Exercise 2 Solution Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering information, processing information and communication services. Major company sectors of the company include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports and so on. Exercise 2 Solution Case Study Help has actually become a specialized information provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Exercise 2 Solution Case Study Help has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Exercise 2 Solution Case Study Help has particular strengths that can be made use of to decrease the risks, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Exercise 2 Solution Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong monetary position permits the company to think about several advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Exercise 2 Solution Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Exercise 2 Solution Case Study Solution as well, but the development might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has presented certain hazards to Exercise 2 Solution Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Exercise 2 Solution Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the yearly total earnings of Exercise 2 Solution Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in bring in a large number of consumers at a prospective price.
Along with it, the 2nd graph which shows the annual development in the Exercise 2 Solution Case Study Solution overall properties, reveals that the company is quite effective in adding worth to its assets through its revenues. The growth in possessions reveals that the total worth of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given data might be the analysis relating to the distribution of overall revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Exercise 2 Solution Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading useful materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Exercise 2 Solution Case Study Solution. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Exercise 2 Solution Case Study Help consists of the concerns of ecological neighborhoods over the use 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 must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Exercise 2 Solution Case Study Analysis consist of the suppliers of the paper for releasing files. 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.
Negotiating power of purchaser 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 needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Exercise 2 Solution Case Study Solution include;.
• Chemical Market 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 could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 company segments to the new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing market growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the data related to the customer demand, the potential markets, the federal government policies and the information associated with the rivals provided in the market. After that, the company needs to choose one potential section for its preliminary offering. It needs to gather research that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the business need to go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term presence, however the scenario can be controlled by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
