Farmland Investing Technical Note Case Study Solution and Analysis
Intro
Farmland Investing Technical Note Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and Farmland Investing Technical Note Case Study Solution in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Farmland Investing Technical Note Case Study Solution has specific strengths that can be used to reduce the dangers, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Farmland Investing Technical Note Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong monetary position permits the company to consider a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Farmland Investing Technical Note Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Farmland Investing Technical Note Case Study Solution too, but the growth could be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has posed particular hazards to Farmland Investing Technical Note Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Farmland Investing Technical Note Case Study Solution 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 acquire a strong customer base by using certain strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. The total monetary performance of the business could be evaluated by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Farmland Investing Technical Note Case Study Help is growing and the business is quite efficient in bring in a a great deal of clients at a possible cost.
Along with it, the 2nd chart which reveals the annual growth in the Farmland Investing Technical Note Case Study Solution total possessions, reveals that the business is quite effective in including worth to its properties through its revenues. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the distribution of overall earnings of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces impacting Farmland Investing Technical Note Case Study Solution organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Farmland Investing Technical Note Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies related to the import of books affect the total company at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Farmland Investing Technical Note Case Study Analysis consists of the issues of ecological communities 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 must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. 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.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Farmland Investing Technical Note Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Farmland Investing Technical Note Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a significant focus on academic publications. CIP functions as a risk 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 Farmland Investing Technical Note Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• 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 business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing industry development. Therefore, introduction of digital publishing might prove to be an immediate option with low quantity of risk for the company. However, the business might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company must initially collects the data related to the consumer demand, the prospective markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the company ought to choose one possible segment for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' items. After all the actions above the company need to go for the initial offering. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, showing a danger to the company's long term presence, but the situation can be managed by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
