First Solar Inc In 2010 Case Study Solution and Analysis
Intro
First Solar Inc In 2010 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing information and communication services. Significant service sectors of the company consist of; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports and so on. First Solar Inc In 2010 Case Study Solution has actually become a specialized info supplier and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and First Solar Inc In 2010 Case Study Help in specific. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 business could be utilized 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
First Solar Inc In 2010 Case Study Help has particular strengths that can be made use of to minimize the threats, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of First Solar Inc In 2010 Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong monetary position permits the business to consider a number of development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of First Solar Inc In 2010 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting First Solar Inc In 2010 Case Study Analysis as well, but the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has presented particular risks to First Solar Inc In 2010 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of First Solar Inc In 2010 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals 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 particular techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly overall profits of First Solar Inc In 2010 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a big number of consumers at a possible price.
Together with it, the 2nd chart which reveals the annual growth in the First Solar Inc In 2010 Case Study Help overall possessions, reveals that the company is rather effective in adding worth to its possessions through its earnings. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis regarding the circulation of overall profits of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the First Solar Inc In 2010 Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books affect the general business at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out helpful materials etc. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the First Solar Inc In 2010 Case Study Analysis. However, the customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting First Solar Inc In 2010 Case Study Solution includes the concerns of ecological neighborhoods over the usage 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 damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry 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, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the First Solar Inc In 2010 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider 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 marketplace saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of First Solar Inc In 2010 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks second and third in various market sections, with a major focus on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of First Solar Inc In 2010 Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as First Solar Inc In 2010 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant option to avoid the decreasing industry development. The company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should initially gathers the information related to the consumer demand, the possible markets, the federal government policies and the data related to the competitors presented in the market. After that, the company needs to choose one prospective segment for its initial offering. It should collect research that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the business must choose the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a hazard to the business's long term existence, however the situation can be managed by considering 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 avoid the risk of failure for entryway in the new markets.
