Global Unichip Corporation B Case Study Solution and Analysis
Global Unichip Corporation B Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and Global Unichip Corporation B Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation 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 utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Global Unichip Corporation B Case Study Solution has specific strengths that can be used to minimize the dangers, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Global Unichip Corporation B Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position permits the business to think about a number of advancement opportunities with no worry of raising fund externally.
Along with the strengths, the company has particular weaknesses which could increase restrictions for the company in implementing its development program. The weak points of Global Unichip Corporation B Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing industry is declining considering that 2008, impacting Global Unichip Corporation B Case Study Solution as well, but the development might be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client 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 large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has postured certain threats to Global Unichip Corporation B Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Global Unichip Corporation B Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors 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 using specific methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the risk of losing the client base.
The business has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be determined. However, the overall financial efficiency of the business could be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Global Unichip Corporation B Case Study Analysis is growing and the company is quite effective in drawing in a large number of customers at a prospective price.
Together with it, the 2nd graph which shows the yearly growth in the Global Unichip Corporation B Case Study Help overall possessions, shows that the business is quite effective in including worth to its assets through its profits. The development in possessions reveals that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis regarding the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a prospective development to attain its future development objective.
PESTEL analysis could be carried out to discover the different external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Global Unichip Corporation B Case Study Help organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Global Unichip Corporation B Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books impact the overall company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Global Unichip Corporation B Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning 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 Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the digital libraries on certain sites. The altering consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive competition in the publishing industry is high. The existence of large number 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 participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Global Unichip Corporation B Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Global Unichip Corporation B Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market segments, with a major concentrate on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Global Unichip Corporation B Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market development. Therefore, intro of digital publishing might prove to be an immediate solution with low amount of risk for the company. The business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially collects the information related to the consumer demand, the potential markets, the government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing industry is decreasing given that 2008, showing a risk to the business's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.