Final Project 3 Case Study Solution and Analysis
Final Project 3 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting info, processing information and interaction services. Significant company segments of the business include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major items consist of books, regulars, online media, exhibitions, research reports and so on. Final Project 3 Case Study Analysis has become a specialized information supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and Final Project 3 Case Study Analysis in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised several questions 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Final Project 3 Case Study Help has specific strengths that can be utilized to decrease the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Final Project 3 Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the business to consider numerous development chances without any fear of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase restraints for the company in executing its development program. The weaknesses of Final Project 3 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Final Project 3 Case Study Analysis also, however the growth might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competitors in the publishing market has presented specific threats to Final Project 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Final Project 3 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the customer base.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual total revenues of Final Project 3 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather effective in attracting a large number of clients at a potential cost.
In addition to it, the 2nd chart which reveals the yearly development in the Final Project 3 Case Study Help overall properties, reveals that the business is rather effective in including worth to its properties through its incomes. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the distribution of total earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a prospective development to attain its future development goal.
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity 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 concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Final Project 3 Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies related to the import of books affect the total service at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Final Project 3 Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Final Project 3 Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Final Project 3 Case Study Solution include;.
• Chemical Industry 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 releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in various market sectors, with a significant focus on academic publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Final Project 3 Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the decreasing market development. The business could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must initially gathers the data connected to the consumer need, the possible markets, the federal government policies and the data connected to the competitors presented in the market. After that, the company ought to choose one potential section for its preliminary offering. It should gather research that how it might separate its digital publishing from the existing competitors' items. The steps above the company need to go for the preliminary offering. The business ought to go for the other markets if the preliminary offering proves a success. In this method the company would be able to implement its digital publishing program.
The growth of the publishing market is declining because 2008, showing a threat to the company's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.