Great Computers Case Study Solution and Analysis
Intro
Great Computers Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Great Computers Case Study Help has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be used 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
Great Computers Case Study Solution has certain strengths that can be utilized to reduce the risks, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Great Computers Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the company to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Great Computers Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Great Computers Case Study Analysis as well, however the development might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually postured particular dangers to Great Computers Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Great Computers Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market together with existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly overall revenues of Great Computers Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is quite efficient in attracting a big number of consumers at a possible cost.
In addition to it, the second chart which shows the annual development in the Great Computers Case Study Solution total assets, shows that the company is rather efficient in adding value to its properties through its profits. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis concerning the distribution of total incomes of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Great Computers Case Study Solution consists of the issues 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 used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the virtual libraries on certain websites. The changing customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Great Computers Case Study Analysis include the suppliers of the paper for publishing files. 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 Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Great Computers Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Great Computers Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total 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 opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an immediate service to prevent the declining market growth. Introduction of digital publishing might prove to be an instant option with low quantity of danger for the company. However, the business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially collects the data related to the customer need, the prospective markets, the government guidelines and the information connected to the competitors provided in the market. After that, the business should decide one possible segment for its preliminary offering. It needs to gather research that how it could differentiate its digital publishing from the existing competitors' products. The actions above the business should go for the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a threat to the business's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
