Freelancers Union Case Study Solution and Analysis
Freelancers Union Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing market in general and Freelancers Union Case Study Solution in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development 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 minimize the dangers, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Freelancers Union Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the company to consider a number of development opportunities without any worry of raising fund externally.
Together with the strengths, the business has certain weak points which could increase restrictions for the business in executing its advancement program. The weaknesses of Freelancers Union Case Study Help are given as follows;
• Despite of being a science and technology publishing company, 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 growth. It must propose specific expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is decreasing considering that 2008, affecting Freelancers Union Case Study Analysis too, but the growth might be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
The altering macro patterns in the market and increasing competition in the publishing market has postured certain threats to Freelancers Union Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Freelancers Union Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the threat of losing the consumer base.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be computed. However, the general monetary efficiency of the business could be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Freelancers Union Case Study Help is growing and the business is quite effective in bring in a large number of customers at a potential cost.
Together with it, the 2nd graph which shows the yearly growth in the Freelancers Union Case Study Analysis total properties, shows that the company is quite effective in including worth to its possessions through its revenues. The development in assets shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the given information could be the analysis regarding the circulation of overall earnings of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a potential development to attain its future development goal.
PESTEL analysis could be conducted to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting Freelancers Union Case Study Analysis company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative materials etc. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Freelancers Union Case Study Solution. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Freelancers Union 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 required to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the virtual libraries on specific websites. The altering customer preferences towards digital learning increase the hazard of substitution for the market.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Freelancers Union Case Study Analysis include the providers of the paper for publishing files. 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 Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Freelancers Union Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP publishes similar kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in various market sectors, with a major concentrate on educational publications. CIP functions as a threat 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 marketplace share of Freelancers Union Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Freelancers Union Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an immediate option to avoid the decreasing industry development. For that reason, intro of digital publishing could show to be an instant option with low quantity of danger for the company. However, the business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should initially gathers the information associated with the customer need, the prospective markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the company ought to decide one prospective segment for its preliminary offering. It needs to collect research that how it might separate its digital publishing from the existing rivals' items. The actions above the business need to go for the preliminary offering. If the initial offering shows a success, the business must go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, revealing a risk to the business's long term presence, however the circumstance can be managed by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.