Great Computers Case Study Solution and Analysis
Introduction
Great Computers Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and Great Computers Case Study Analysis in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company 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
Great Computers Case Study Help has particular strengths that can be used to lower the risks, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Great Computers Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the company to think about several advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase constraints for the company in implementing its development program. The weak points of Great Computers Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting Great Computers Case Study Analysis as well, but the growth could be restored by availing specific chances presented in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has postured certain dangers to Great Computers Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Great Computers Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly overall earnings of Great Computers Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in attracting a large number of clients at a possible cost.
Along with it, the 2nd graph which shows the yearly growth in the Great Computers Case Study Solution total properties, reveals that the company is rather efficient in including worth to its possessions through its profits. The development in possessions shows that the total worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis concerning the circulation of overall profits of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Great Computers Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the total service at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Great Computers Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on specific websites. The changing customer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Great Computers Case Study Help consist of 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 supplier 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 marketplace saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Great Computers Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and second in various market sections, with a significant focus on instructional publications. 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 marketplace share of Great Computers Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant solution to prevent the declining market development. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to initially collects the data related to the consumer need, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a danger to the business's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
