Fly Ash Brick Project 2 Case Study Solution and Analysis
Intro
Fly Ash Brick Project 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details company and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Fly Ash Brick Project 2 Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fly Ash Brick Project 2 Case Study Analysis has certain strengths that can be used to minimize the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Fly Ash Brick Project 2 Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position enables the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Fly Ash Brick Project 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting Fly Ash Brick Project 2 Case Study Help as well, but the development might be restored by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned certain threats to Fly Ash Brick Project 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Fly Ash Brick Project 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The overall monetary efficiency of the business could be evaluated by utilizing the charts offered in the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Fly Ash Brick Project 2 Case Study Analysis is growing and the company is quite effective in drawing in a large number of customers at a potential cost.
Together with it, the second chart which shows the annual growth in the Fly Ash Brick Project 2 Case Study Solution overall assets, shows that the business is rather efficient in including value to its possessions through its earnings. The development in properties shows that the overall value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the circulation of overall incomes 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 company might move towards other service sections with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Fly Ash Brick Project 2 Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Fly Ash Brick Project 2 Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the general business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Fly Ash Brick Project 2 Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers 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 likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Fly Ash Brick Project 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Fly Ash Brick Project 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Fly Ash Brick Project 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business require an immediate solution to prevent the declining industry growth. Intro of digital publishing could prove to be an instant option with low quantity of threat for the business. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the consumer demand, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a threat to the business's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
