Ghana National Economic Strategy 2 Case Study Solution and Analysis
Introduction
Ghana National Economic Strategy 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing info and interaction services. Major company segments of the business include; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports and so on. Ghana National Economic Strategy 2 Case Study Analysis has actually become a specialized details provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in general and Ghana National Economic Strategy 2 Case Study Solution in particular. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Ghana National Economic Strategy 2 Case Study Solution has certain strengths that can be used to minimize the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ghana National Economic Strategy 2 Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position permits the business to consider several advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Ghana National Economic Strategy 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing because 2008, affecting Ghana National Economic Strategy 2 Case Study Solution as well, but the growth might be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned specific dangers to Ghana National Economic Strategy 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Ghana National Economic Strategy 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual total incomes of Ghana National Economic Strategy 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the business is quite efficient in attracting a big number of consumers at a prospective price.
Along with it, the 2nd graph which reveals the yearly growth in the Ghana National Economic Strategy 2 Case Study Help overall assets, reveals that the company is rather efficient in adding worth to its assets through its incomes. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the distribution of overall profits of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company 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, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the general political forces affecting Ghana National Economic Strategy 2 Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Ghana National Economic Strategy 2 Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies 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 Regulation 1997 needs the publishers to be approved 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 Five Forces Design).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the virtual libraries on particular sites. The changing customer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Ghana National Economic Strategy 2 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Ghana National Economic Strategy 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major concentrate on educational publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Ghana National Economic Strategy 2 Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an immediate service to prevent the declining industry growth. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the company ought to choose one prospective segment for its preliminary offering. It needs to gather research study that how it might separate its digital publishing from the existing competitors' products. The actions above the business must go for the initial offering. If the preliminary offering proves a success, the business should choose the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a threat to the company's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
