Flash Memory Inc 7 Case Study Solution and Analysis
Flash Memory Inc 7 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Flash Memory Inc 7 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction 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 situation? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Flash Memory Inc 7 Case Study Solution has particular strengths that can be made use of to minimize the threats, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Flash Memory Inc 7 Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position enables the company to think about several development chances with no worry of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Flash Memory Inc 7 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Flash Memory Inc 7 Case Study Solution as well, but the development could be revived by availing specific opportunities provided 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 client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has postured particular hazards to Flash Memory Inc 7 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Flash Memory Inc 7 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the threat of losing the client base.
Due to lack of data, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the annual total profits of Flash Memory Inc 7 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in drawing in a big number of consumers at a prospective rate.
Together with it, the second chart which shows the annual development in the Flash Memory Inc 7 Case Study Help total assets, reveals that the business is rather efficient in adding worth to its assets through its earnings. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the distribution of total earnings of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a prospective growth to achieve its future advancement goal.
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Flash Memory Inc 7 Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the overall business at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative products etc. China has the greatest population in the world with a high population growth, showing the increasing variety of consumers of the Flash Memory Inc 7 Case Study Solution. However, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Flash Memory Inc 7 Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The alternative products for the released files is the files provided in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the danger of substitution for the market.
Competitive rivalry in the publishing market 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 likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Flash Memory Inc 7 Case Study Help consist of the suppliers of the paper for publishing 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 Purchaser.
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 buyers requires high quality documents at competitive prices.
CMP runs in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Flash Memory Inc 7 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in different market sections, with a significant focus on instructional publications. CIP functions 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 marketplace share of Flash Memory Inc 7 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Flash Memory Inc 7 Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the business need an instant solution to avoid the decreasing industry growth. The company could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the information related to the consumer need, the potential markets, the government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
The growth of the publishing market is decreasing given that 2008, showing a risk to the business's long term existence, however the situation can be controlled by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.