Freelancers Union Case Study Solution and Analysis
Freelancers Union Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing info and interaction services. Significant service sections of the company consist of; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major products include books, periodicals, online media, exhibits, research reports etc. Freelancers Union Case Study Analysis has actually ended up being a specialized information provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Freelancers Union Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These elements include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Freelancers Union Case Study Help has particular strengths that can be utilized to decrease the hazards, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Freelancers Union Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position permits the business to consider several advancement chances with no fear of raising fund externally.
Together with the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Freelancers Union Case Study Help 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 development. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is decreasing given that 2008, impacting Freelancers Union Case Study Help as well, but the growth could be revived by availing particular chances presented in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competition in the publishing market has actually postured specific dangers to Freelancers Union Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Freelancers Union Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the customer base.
The business has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be determined. However, the general monetary efficiency of the company could be examined by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Freelancers Union Case Study Help is growing and the company is quite effective in drawing in a a great deal of customers at a prospective rate.
Along with it, the second graph which reveals the yearly development in the Freelancers Union Case Study Solution total possessions, shows that the company is quite effective in adding worth to its properties through its revenues. The growth in assets shows that the overall value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis regarding the distribution of total profits of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a potential growth to accomplish its future development objective.
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Freelancers Union Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies associated with the import of books impact the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out helpful products etc. China has the highest population worldwide with a high population development, revealing the increasing variety of consumers of the Freelancers Union Case Study Help. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting Freelancers Union Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal regulations 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 Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five 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 provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents provided in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the threat of alternative for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Freelancers Union Case Study Analysis include the providers of the paper for releasing 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 buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
CMP runs in an extremely competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Freelancers Union 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 publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a major concentrate on academic publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Freelancers Union Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• 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 company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company need an instant option to avoid the decreasing market growth. For that reason, introduction of digital publishing might prove to be an immediate solution with low amount of risk for the company. The company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first gathers the data related to the consumer demand, the prospective markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, showing a risk to the company's long term existence, but the scenario can be managed by considering a development strategy in the future. The business might think about presenting 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.