Fair Mead Marine 2 Case Study Solution and Analysis
Fair Mead Marine 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering information, processing details and interaction services. Major business segments of the business include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant products include books, periodicals, online media, exhibitions, research study reports and so on. Fair Mead Marine 2 Case Study Analysis has become a specialized details supplier and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and Fair Mead Marine 2 Case Study Help in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions 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 company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Fair Mead Marine 2 Case Study Analysis has specific strengths that can be utilized to decrease the risks, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Fair Mead Marine 2 Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position allows the company to think about several development opportunities with no fear of raising fund externally.
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Fair Mead Marine 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
The development of the publishing industry is declining since 2008, impacting Fair Mead Marine 2 Case Study Help as well, but the growth might be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has postured specific dangers to Fair Mead Marine 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Fair Mead Marine 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market along with existence of high competition increases the danger of losing the consumer base.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly total profits of Fair Mead Marine 2 Case Study Solution throughout 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 business is quite effective in bring in a large number of consumers at a possible price.
Along with it, the second chart which reveals the yearly growth in the Fair Mead Marine 2 Case Study Analysis overall properties, reveals that the company is rather efficient in adding value to its assets through its incomes. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the distribution of overall profits of the company. Huge part of the revenues 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 company segments with a potential growth to achieve its future development objective.
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out useful products and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Fair Mead Marine 2 Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting Fair Mead Marine 2 Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the files presented in the virtual libraries on certain sites. The altering consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Fair Mead Marine 2 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Fair Mead Marine 2 Case Study Solution 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 could wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Fair Mead Marine 2 Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the company need an instant service to avoid the declining industry growth. The business might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data connected to the consumer need, the possible markets, the federal government policies and the information associated with the competitors provided in the market. After that, the business needs to choose one possible section for its preliminary offering. It needs to gather research that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the company ought to choose the initial offering. If the preliminary offering shows a success, the business should go for the other markets. In this method the company would have the ability to implement its digital publishing program.
The growth of the publishing market is declining since 2008, showing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the new markets.