Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution and Analysis
Introduction
Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution has particular strengths that can be utilized to minimize the hazards, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position enables the business to consider several development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining since 2008, impacting Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis as well, however the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually presented particular hazards to Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual total revenues of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is rather effective in bring in a big number of customers at a prospective price.
Along with it, the second graph which reveals the annual growth in the Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution overall assets, shows that the company is quite efficient in including value to its assets through its earnings. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of total incomes of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies associated with the import of books impact the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences 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 altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Government Policy And Firm Strategy In The Solar Photovoltaic Industry 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed 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 involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the virtual libraries on particular sites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a significant concentrate on educational 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 might wean the market share of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to prevent the decreasing industry growth. Intro of digital publishing might show to be an instant service with low quantity of threat for the business. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should initially gathers the data related to the customer need, the potential markets, the government regulations and the information connected to the rivals presented in the market. After that, the business ought to decide one prospective sector for its preliminary offering. It needs to gather research study that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the business need to choose the preliminary offering. If the preliminary offering proves a success, the business ought to choose the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a danger to the company's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
