Fair Mead Marine 4 Case Study Solution and Analysis
Intro
Fair Mead Marine 4 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing info and interaction services. Significant organisation sectors of the business include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major products consist of books, regulars, online media, exhibits, research reports and so on. Fair Mead Marine 4 Case Study Solution has actually become a specialized information supplier and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Fair Mead Marine 4 Case Study Help has invested its 60 years journey smoothly, 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 factors include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be used 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 4 Case Study Help has specific strengths that can be made use of to minimize the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Fair Mead Marine 4 Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position permits the business to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Fair Mead Marine 4 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Fair Mead Marine 4 Case Study Help also, but the development might be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has posed specific threats to Fair Mead Marine 4 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Fair Mead Marine 4 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market along with existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual total revenues of Fair Mead Marine 4 Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a large number of customers at a potential rate.
Together with it, the second graph which shows the yearly growth in the Fair Mead Marine 4 Case Study Solution overall properties, shows that the company is rather effective in adding value to its possessions through its revenues. The development in assets reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided information might be the analysis regarding the circulation of total revenues of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Fair Mead Marine 4 Case Study Analysis company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Fair Mead Marine 4 Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Fair Mead Marine 4 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Fair Mead Marine 4 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a significant concentrate on educational publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Fair Mead Marine 4 Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Fair Mead Marine 4 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate option to prevent the declining market development. For that reason, introduction of digital publishing might prove to be an immediate solution with low amount of risk for the company. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially collects the information connected to the consumer demand, the prospective markets, the government policies and the information connected to the rivals presented in the market. After that, the company should choose one prospective section for its preliminary offering. It should gather research that how it might distinguish its digital publishing from the existing rivals' items. The actions above the company need to go for the preliminary offering. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
