Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution and Analysis
Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous concerns 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 capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution has certain strengths that can be made use of to reduce the hazards, overcome the weakness and obtain the chances. Strengths of CMP are offered 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 permits the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong monetary position enables the business to consider a number of advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its development program. The weak points of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is declining given that 2008, affecting Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help as well, but the development could be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competition in the publishing industry has postured specific hazards to Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the consumer base.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in attracting a big number of customers at a potential price.
Along with it, the 2nd chart which shows the yearly growth in the Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Solution overall properties, reveals that the business is rather efficient in adding worth to its possessions through its revenues. The development in assets reveals that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis regarding the distribution of overall earnings of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a possible growth to achieve its future development goal.
PESTEL analysis might be carried out to find out the different external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces impacting Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct involvement 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 beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers needs high quality documents at competitive costs.
CMP runs in an extremely competitive market 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. Significant rivals of Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the same period as Government Policy And Firm Strategy In The Solar Photovoltaic Industry Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining market growth. Introduction of digital publishing could show to be an instant option with low amount of risk for the business. However, the company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should initially gathers the data related to the consumer demand, the possible markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing market is decreasing since 2008, revealing a danger to the business's long term presence, however the scenario can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.