From Imitation To Innovation Zongshen Industrial Group Case Study Solution and Analysis
Intro
From Imitation To Innovation Zongshen Industrial Group Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing info and communication services. Major organisation segments of the company include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports and so on. From Imitation To Innovation Zongshen Industrial Group Case Study Help has actually become a specialized info service provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and From Imitation To Innovation Zongshen Industrial Group Case Study Help in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
From Imitation To Innovation Zongshen Industrial Group Case Study Solution has specific strengths that can be utilized to decrease the threats, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of From Imitation To Innovation Zongshen Industrial Group Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the company to think about numerous advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of From Imitation To Innovation Zongshen Industrial Group Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting From Imitation To Innovation Zongshen Industrial Group Case Study Analysis as well, but the growth might be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has postured certain hazards to From Imitation To Innovation Zongshen Industrial Group Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of From Imitation To Innovation Zongshen Industrial Group Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be determined. The total financial efficiency of the company might be evaluated by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of From Imitation To Innovation Zongshen Industrial Group Case Study Help is growing and the business is quite effective in drawing in a large number of clients at a potential price.
Along with it, the second graph which reveals the annual development in the From Imitation To Innovation Zongshen Industrial Group Case Study Help total possessions, shows that the company is quite effective in adding value to its possessions through its revenues. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis concerning the distribution of total incomes of the business. Huge 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 business might move towards other service segments with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the From Imitation To Innovation Zongshen Industrial Group Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books affect the overall service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting From Imitation To Innovation Zongshen Industrial Group Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the From Imitation To Innovation Zongshen Industrial Group Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider 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 documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence 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. Significant competitors of From Imitation To Innovation Zongshen Industrial Group Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in different market sections, with a significant concentrate on instructional publications. CIP acts as a hazard 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 From Imitation To Innovation Zongshen Industrial Group Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as From Imitation To Innovation Zongshen Industrial Group Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining industry growth. The business could also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first gathers the information related to the consumer need, the possible markets, the government guidelines and the information related to the competitors 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 implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
