Fair Mead Marine 3 Case Study Solution and Analysis
Introduction
Fair Mead Marine 3 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Fair Mead Marine 3 Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fair Mead Marine 3 Case Study Analysis has certain strengths that can be utilized to lower the threats, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Fair Mead Marine 3 Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which could increase constraints for the business in executing its advancement program. The weaknesses of Fair Mead Marine 3 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, 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 ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Fair Mead Marine 3 Case Study Help as well, however the growth could be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented specific threats to Fair Mead Marine 3 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Fair Mead Marine 3 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly overall incomes of Fair Mead Marine 3 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is rather effective in drawing in a large number of customers at a prospective price.
Along with it, the 2nd chart which reveals the annual development in the Fair Mead Marine 3 Case Study Analysis overall properties, reveals that the company is rather effective in adding worth to its possessions through its revenues. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis regarding the circulation of overall earnings of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business 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 impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Fair Mead Marine 3 Case Study Analysis 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 combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the total service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Fair Mead Marine 3 Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Fair Mead Marine 3 Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered 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 new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Fair Mead Marine 3 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Fair Mead Marine 3 Case Study Solution include;.
• Chemical Market 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing industry development. The company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the information related to the consumer demand, the potential markets, the federal government regulations and the information related to the rivals provided in the market. After that, the company should choose one potential section for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing competitors' items. The steps above the company should go for the preliminary offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the business's long term existence, but the scenario can be managed 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 immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
