Great Computers 2 Case Study Solution and Analysis
Introduction
Great Computers 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Great Computers 2 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 scenario? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Great Computers 2 Case Study Help has specific strengths that can be used to decrease the threats, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Great Computers 2 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position allows the business to consider a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of Great Computers 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Great Computers 2 Case Study Analysis as well, however the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned certain risks to Great Computers 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Great Computers 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. However, the general financial efficiency of the company could be examined by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Great Computers 2 Case Study Analysis is growing and the company is rather efficient in attracting a large number of customers at a prospective rate.
Together with it, the 2nd chart which reveals the annual growth in the Great Computers 2 Case Study Help total properties, reveals that the company is rather effective in adding value to its possessions through its earnings. The development in properties reveals that the total value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the circulation of total profits of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces affecting Great Computers 2 Case Study Help business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out useful materials and so on. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Great Computers 2 Case Study Analysis. However, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Great Computers 2 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 should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the virtual libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Great Computers 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market 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 industry with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Great Computers 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Great Computers 2 Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential 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 present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate option to avoid the decreasing industry growth. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data related to the consumer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, showing a threat to the business's long term presence, however the situation can be managed by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
