Four Star Industries Singapore Case Study Solution and Analysis
Introduction
Four Star Industries Singapore Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing details and communication services. Major company sectors of the company include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its major products include books, regulars, online media, exhibitions, research study reports etc. Four Star Industries Singapore Case Study Help has ended up being a specialized details provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Four Star Industries Singapore Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Four Star Industries Singapore Case Study Help has specific strengths that can be used to lower the threats, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Four Star Industries Singapore Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position permits the company to think about numerous development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which could increase restrictions for the business in implementing its development program. The weak points of Four Star Industries Singapore Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Four Star Industries Singapore Case Study Solution also, however the growth could be restored by availing particular chances provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has presented particular hazards to Four Star Industries Singapore Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Four Star Industries Singapore Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall earnings of Four Star Industries Singapore Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the business is quite efficient in bring in a large number of customers at a possible rate.
In addition to it, the second graph which reveals the yearly growth in the Four Star Industries Singapore Case Study Help total assets, reveals that the company is rather effective in adding value to its assets through its profits. The growth in assets shows that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis regarding the distribution of total profits of the company. Huge part of the incomes of CMP originates 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 advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the company and the recent patterns 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 significant impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Four Star Industries Singapore Case Study Help company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Four Star Industries Singapore Case Study Help 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 utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the digital libraries on particular websites. The changing customer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Four Star Industries Singapore Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest 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 a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence 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 competitors of Four Star Industries Singapore Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on academic publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Four Star Industries Singapore Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Four Star Industries Singapore Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value 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 new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant solution to avoid the declining industry development. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first collects the information related to the consumer need, the prospective markets, the government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a threat to the business's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
