First Look The Second Annual Sustainability Innovation Survey Case Study Solution and Analysis
Introduction
First Look The Second Annual Sustainability Innovation Survey Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing market in basic and First Look The Second Annual Sustainability Innovation Survey Case Study Solution in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 valuable experience, technical resources and the abilities of the company 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 Sustainability Innovation Survey Case Study Solution has certain strengths that can be made use of to minimize the hazards, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of First Look The Second Annual Sustainability Innovation Survey Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position permits the company to consider several development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restraints for the company in executing its development program. The weaknesses of First Look The Second Annual Sustainability Innovation Survey Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting First Look The Second Annual Sustainability Innovation Survey Case Study Help as well, however the growth might be restored by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular risks to First Look The Second Annual Sustainability Innovation Survey Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of First Look The Second Annual Sustainability Innovation Survey Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market together with presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall profits of First Look The Second Annual Sustainability Innovation Survey Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is rather effective in attracting a big number of clients at a possible rate.
Together with it, the second graph which reveals the yearly development in the First Look The Second Annual Sustainability Innovation Survey Case Study Analysis overall possessions, reveals that the business is quite effective in including value to its properties through its revenues. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the circulation of overall earnings of the company. Major part of the revenues 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 organisation sectors with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the overall political forces affecting First Look The Second Annual Sustainability Innovation Survey Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the First Look The Second Annual Sustainability Innovation Survey Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general organisation at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development 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.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting First Look The Second Annual Sustainability Innovation Survey Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the documents presented in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the First Look The Second Annual Sustainability Innovation Survey Case Study Analysis include 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of First Look The Second Annual Sustainability Innovation Survey Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and second in various market sections, with a major focus on educational publications. CIP serves as a threat 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 First Look The Second Annual Sustainability Innovation Survey Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival 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 regards to company scale. It is likewise one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an immediate option to prevent the decreasing industry development. The business could also 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 gathers the information related to the consumer need, the prospective markets, the government policies and the data related to the rivals presented in the market. After that, the company ought to choose one potential sector for its preliminary offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' products. The actions above the business need to go for the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
