Flash Memory Inc 7 Case Study Solution and Analysis
Intro
Flash Memory Inc 7 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing information and interaction services. Significant organisation segments of the company include; books, regulars, consultancy and circulation. The business has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports and so on. Flash Memory Inc 7 Case Study Solution has ended up being a specialized info service provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and Flash Memory Inc 7 Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised numerous 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 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
Flash Memory Inc 7 Case Study Analysis has particular strengths that can be used to reduce the risks, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Flash Memory Inc 7 Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong monetary position allows the business to think about a number of development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which could increase restraints for the business in implementing its advancement program. The weaknesses of Flash Memory Inc 7 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth 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, affecting Flash Memory Inc 7 Case Study Analysis also, but the development could be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has positioned particular hazards to Flash Memory Inc 7 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Flash Memory Inc 7 Case Study Solution due to the customer shift towards digital 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 get a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry along with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total earnings of Flash Memory Inc 7 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather effective in drawing in a large number of consumers at a possible cost.
Along with it, the second chart which reveals the yearly development in the Flash Memory Inc 7 Case Study Help total possessions, reveals that the company is rather efficient in adding value to its assets through its incomes. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the distribution of overall earnings of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Flash Memory Inc 7 Case Study Solution company 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 general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth 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 preferences towards reading informative materials etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of customers of the Flash Memory Inc 7 Case Study Help. Nevertheless, the customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Flash Memory Inc 7 Case Study Analysis includes the concerns of environmental 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 should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Flash Memory Inc 7 Case Study Help include the suppliers 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 industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company 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 include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP releases similar 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 educational publications. CIP acts as a hazard 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 marketplace share of Flash Memory Inc 7 Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period 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 industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an instant option to avoid the declining industry development. Intro of digital publishing might show to be an instant service with low amount of threat for the company. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should initially gathers the data related to the consumer demand, the prospective markets, the federal government policies and the information connected to the rivals presented in the market. After that, the business ought to decide one potential segment for its preliminary offering. It should collect research study that how it might separate its digital publishing from the existing competitors' items. After all the steps above the business should opt for the preliminary offering. If the initial offering shows a success, the company ought to choose the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a hazard to the company's long term presence, but the scenario can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
