Gold Peak Electronics Case Study Solution and Analysis
Introduction
Gold Peak Electronics Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Gold Peak Electronics Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Gold Peak Electronics Case Study Solution has particular strengths that can be made use of to reduce the risks, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Gold Peak Electronics Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position allows the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Gold Peak Electronics Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Gold Peak Electronics Case Study Solution too, however the growth might be revived by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually presented certain risks to Gold Peak Electronics Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Gold Peak Electronics Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be determined. The total financial performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Gold Peak Electronics Case Study Analysis is growing and the business is quite efficient in attracting a a great deal of consumers at a prospective cost.
Along with it, the 2nd graph which shows the yearly growth in the Gold Peak Electronics Case Study Solution total properties, reveals that the company is quite efficient in adding value to its assets through its incomes. The development in properties reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis regarding the distribution of overall earnings of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Gold Peak Electronics Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the documents provided in the digital libraries on certain websites. The altering customer preferences towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Gold Peak Electronics Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Gold Peak Electronics Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Gold Peak Electronics Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate 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 products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market development. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should first collects the information related to the customer need, the potential markets, the federal government policies and the information connected to the rivals presented in the market. After that, the business needs to decide one possible section for its initial offering. It ought to gather research study that how it might differentiate its digital publishing from the existing rivals' products. After all the steps above the business need to choose the preliminary offering. The business ought to go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, revealing a danger to the business's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
