Fly Ash Brick Project 3 Case Study Solution and Analysis
Introduction
Fly Ash Brick Project 3 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing info and interaction services. Significant organisation sections of the business consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Fly Ash Brick Project 3 Case Study Analysis has actually ended up being a specialized information service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in general and Fly Ash Brick Project 3 Case Study Analysis in specific. These elements include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement 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 capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fly Ash Brick Project 3 Case Study Analysis has certain strengths that can be used to lower the risks, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Fly Ash Brick Project 3 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong monetary position enables the company to consider a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which could increase constraints for the company in executing its advancement program. The weaknesses of Fly Ash Brick Project 3 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining since 2008, affecting Fly Ash Brick Project 3 Case Study Analysis as well, but the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has posed specific hazards to Fly Ash Brick Project 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Fly Ash Brick Project 3 Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. However, the overall financial performance of the company could be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Fly Ash Brick Project 3 Case Study Solution is growing and the business is rather effective in attracting a a great deal of clients at a possible rate.
In addition to it, the second graph which reveals the annual growth in the Fly Ash Brick Project 3 Case Study Solution overall properties, reveals that the business is rather effective in adding worth to its possessions through its earnings. The growth in properties reveals that the total worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the circulation of overall incomes of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Fly Ash Brick Project 3 Case Study Analysis organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Fly Ash Brick Project 3 Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall organisation at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative materials and so on. China has the greatest population worldwide with a high population development, showing the increasing number of consumers of the Fly Ash Brick Project 3 Case Study Analysis. However, the customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Fly Ash Brick Project 3 Case Study Solution 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 disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on specific sites. The changing consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Fly Ash Brick Project 3 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 total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Fly Ash Brick Project 3 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market growth. Introduction of digital publishing could show to be an immediate service with low quantity of threat for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially gathers the information related to the consumer need, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, but the circumstance can be controlled 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 instant basis and to prevent the threat of failure for entrance in the brand-new markets.
