Geo Tech 6 Case Study Solution and Analysis
Introduction
Geo Tech 6 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing info and interaction services. Significant business sections of the company consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Geo Tech 6 Case Study Help has ended up being a specialized details provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Geo Tech 6 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 abilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Geo Tech 6 Case Study Help has certain strengths that can be used to reduce the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Geo Tech 6 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position enables the business to think about numerous development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Geo Tech 6 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Geo Tech 6 Case Study Analysis as well, but the growth could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually posed specific hazards to Geo Tech 6 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Geo Tech 6 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be determined. However, the total monetary efficiency of the company could be analyzed by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Geo Tech 6 Case Study Help is growing and the company is quite effective in drawing in a large number of consumers at a potential cost.
Together with it, the second chart which reveals the yearly growth in the Geo Tech 6 Case Study Help total assets, reveals that the business is quite efficient in adding worth to its properties through its profits. The growth in properties reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the circulation of overall profits of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Geo Tech 6 Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Geo Tech 6 Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Geo Tech 6 Case Study Analysis consists of the concerns of environmental 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 used while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Geo Tech 6 Case Study Analysis include the suppliers of the paper for publishing files. 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.
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 needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Geo Tech 6 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a major focus on academic publications. CIP acts as a risk 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 market share of Geo Tech 6 Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Geo Tech 6 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate service to prevent the decreasing industry growth. Therefore, introduction of digital publishing could show to be an immediate solution with low amount of risk for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should initially collects the information connected to the customer demand, the potential markets, the government regulations and the data connected to the competitors presented in the market. After that, the business ought to choose one possible segment for its preliminary offering. It ought to gather research that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the business need to opt for the initial offering. If the preliminary offering shows a success, the business ought to opt for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, showing a hazard to the business's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
