Fair Mead Marine Case Study Solution and Analysis
Fair Mead Marine Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Fair Mead Marine Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Fair Mead Marine Case Study Solution has particular strengths that can be used to lower the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Fair Mead Marine Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the company to consider several advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which might increase constraints for the business in executing its advancement program. The weak points of Fair Mead Marine Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Fair Mead Marine Case Study Help too, however the development could be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific hazards to Fair Mead Marine Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Fair Mead Marine Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market together with existence of high competition increases the hazard of losing the consumer base.
Due to absence of data, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly total profits of Fair Mead Marine Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in attracting a big number of clients at a potential price.
Along with it, the 2nd graph which shows the annual growth in the Fair Mead Marine Case Study Solution overall properties, shows that the business is rather effective in adding worth to its possessions through its revenues. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis relating to the distribution of overall incomes of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential growth to accomplish its future development goal.
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the general political forces affecting Fair Mead Marine Case Study Solution company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Fair Mead Marine Case Study Solution in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the overall company at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
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 fulfill the altering consumer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing could lower the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces affecting Fair Mead Marine Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
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 first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the files presented in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Fair Mead Marine Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 buyers needs high quality files at competitive prices.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. 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 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in numerous market sections, with a significant focus on instructional publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Fair Mead Marine Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Fair Mead Marine Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business need an instant service to prevent the decreasing industry development. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first gathers the information related to the customer need, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining considering that 2008, showing a risk to the company's long term presence, however the situation can be controlled by considering a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.