Fast Ion Battery 4 Case Study Solution and Analysis
Introduction
Fast Ion Battery 4 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing details and interaction services. Major company segments of the company consist of; books, regulars, consultancy and distribution. The company has a large item portfolio and its significant items include books, periodicals, online media, exhibits, research reports and so on. Fast Ion Battery 4 Case Study Solution has actually ended up being a specialized details service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Fast Ion Battery 4 Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fast Ion Battery 4 Case Study Solution has certain strengths that can be used to decrease the dangers, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Fast Ion Battery 4 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the company to think about numerous advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restrictions for the business in implementing its development program. The weak points of Fast Ion Battery 4 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Fast Ion Battery 4 Case Study Analysis also, however the development might be revived by availing certain chances presented in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned particular risks to Fast Ion Battery 4 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Fast Ion Battery 4 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. However, the general monetary performance of the business could be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Fast Ion Battery 4 Case Study Help is growing and the company is quite effective in drawing in a large number of consumers at a potential price.
Together with it, the second graph which shows the yearly growth in the Fast Ion Battery 4 Case Study Solution overall assets, shows that the company is rather effective in adding value to its assets through its incomes. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the distribution of total revenues of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the performance of the business and the current patterns 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 might have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Fast Ion Battery 4 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall service at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative products etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of consumers of the Fast Ion Battery 4 Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing could lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Fast Ion Battery 4 Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer choices towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Fast Ion Battery 4 Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier 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 market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Fast Ion Battery 4 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-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 together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an immediate service to avoid the decreasing industry development. Intro of digital publishing could prove to be an instant option with low quantity of risk for the business. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the information associated with the consumer demand, the possible markets, the federal government policies and the data connected to the competitors provided in the market. After that, the business needs to choose one prospective sector for its initial offering. It should gather research that how it could distinguish its digital publishing from the existing competitors' products. The steps above the company need to go for the initial offering. The business ought to go for the other markets if the initial offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a danger to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
