Fair Mead Marine 2 Case Study Solution and Analysis
Introduction
Fair Mead Marine 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing details and interaction services. Major company segments of the business include; books, regulars, consultancy and circulation. The company has a large item portfolio and its major items include books, regulars, online media, exhibits, research study reports etc. Fair Mead Marine 2 Case Study Analysis has actually become a specialized details company and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Fair Mead Marine 2 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 business 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
Fair Mead Marine 2 Case Study Analysis has particular strengths that can be utilized to reduce the risks, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Fair Mead Marine 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position permits the business to think about a number of advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase constraints for the business in implementing its development program. The weak points of Fair Mead Marine 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Fair Mead Marine 2 Case Study Solution also, however the growth could be restored by availing certain chances presented in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented specific dangers to Fair Mead Marine 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Fair Mead Marine 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual overall incomes of Fair Mead Marine 2 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is rather effective in attracting a large number of customers at a prospective price.
Together with it, the second graph which shows the yearly development in the Fair Mead Marine 2 Case Study Analysis total possessions, reveals that the company is rather effective in including worth to its assets through its profits. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the circulation of overall earnings of the company. Major 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 company sectors with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces affecting Fair Mead Marine 2 Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth 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 growth, the customer's preferences towards checking out informative materials and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Fair Mead Marine 2 Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Fair Mead Marine 2 Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Fair Mead Marine 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Fair Mead Marine 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Fair Mead Marine 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant service to avoid the decreasing market development. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should initially gathers the data associated with the consumer demand, the potential markets, the government guidelines and the information connected to the competitors provided in the market. After that, the business should choose one possible sector for its preliminary offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the company should go for the initial offering. The company should go for the other markets if the initial offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a danger to the business's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
