Greece Case Study Solution and Analysis
Intro
Greece Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing industry in basic and Greece Case Study Analysis in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions 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 business could be used 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
Greece Case Study Help has specific strengths that can be made use of to decrease the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Greece Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position allows the business to think about several development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Greece Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining since 2008, impacting Greece Case Study Analysis as well, but the development might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has presented particular risks to Greece Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Greece Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall revenues of Greece Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is quite effective in drawing in a large number of consumers at a prospective cost.
Along with it, the second chart which reveals the annual growth in the Greece Case Study Solution overall possessions, reveals that the business is rather effective in adding value to its assets through its revenues. The growth in properties reveals that the total value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the distribution of total revenues of the company. Huge part of the profits 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 sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance 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).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Greece Case Study Solution company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Greece Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines 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 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the virtual libraries on certain sites. The changing customer choices towards digital knowing increase the risk of substitution for the market.
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 and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Greece Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Greece Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks third and second in numerous market sectors, with a significant concentrate on educational publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Greece Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Greece Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing industry development. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information related to the customer demand, the prospective markets, the government regulations and the information related to the rivals provided in the market. After that, the company needs to decide one potential section for its preliminary offering. It ought to collect research that how it could separate its digital publishing from the existing rivals' products. After all the actions above the business must choose the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a danger to the business's long term existence, however the scenario can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
