First Look The Second Annual New Intelligent Enterprise Survey Case Study Solution and Analysis
Intro
First Look The Second Annual New Intelligent Enterprise Survey Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, First Look The Second Annual New Intelligent Enterprise Survey Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
First Look The Second Annual New Intelligent Enterprise Survey Case Study Solution has certain strengths that can be used to decrease the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of First Look The Second Annual New Intelligent Enterprise Survey Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position permits the company to think about several development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase restraints for the company in executing its advancement program. The weak points of First Look The Second Annual New Intelligent Enterprise Survey Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting First Look The Second Annual New Intelligent Enterprise Survey Case Study Analysis as well, but the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has postured certain dangers to First Look The Second Annual New Intelligent Enterprise Survey Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of First Look The Second Annual New Intelligent Enterprise Survey Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. The general monetary efficiency of the company might be evaluated by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of First Look The Second Annual New Intelligent Enterprise Survey Case Study Analysis is growing and the company is quite effective in drawing in a a great deal of consumers at a potential price.
In addition to it, the 2nd graph which shows the annual growth in the First Look The Second Annual New Intelligent Enterprise Survey Case Study Analysis overall possessions, reveals that the business is rather efficient in adding value to its possessions through its incomes. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the circulation of total revenues of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful materials and so on. China has the greatest population in the world with a high population growth, showing the increasing variety of consumers of the First Look The Second Annual New Intelligent Enterprise Survey Case Study Analysis. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting First Look The Second Annual New Intelligent Enterprise Survey Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations 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.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files presented in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the First Look The Second Annual New Intelligent Enterprise Survey Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of First Look The Second Annual New Intelligent Enterprise Survey Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining industry development. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to initially gathers the information connected to the consumer need, the prospective markets, the government guidelines and the data related to the rivals provided in the market. After that, the company must decide one potential sector for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the company ought to go for the preliminary offering. If the initial offering shows a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
