Griffith University Case Study Solution and Analysis
Introduction
Griffith University Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and communication services. Major organisation segments of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major items include books, regulars, online media, exhibitions, research reports etc. Griffith University Case Study Analysis has become a specialized information company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and Griffith University Case Study Analysis in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change 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 business could be utilized 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
Griffith University Case Study Help has specific strengths that can be utilized to lower the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Griffith University Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position allows the company to think about several advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its advancement program. The weaknesses of Griffith University Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, 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 development. It must propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting Griffith University Case Study Help as well, but the development might be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has positioned certain hazards to Griffith University Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Griffith University Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry together with existence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total earnings of Griffith University Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is rather efficient in attracting a big number of customers at a prospective cost.
Along with it, the 2nd chart which shows the annual growth in the Griffith University Case Study Help total properties, reveals that the company is rather effective in including value to its possessions through its profits. The development in assets shows that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the distribution of total earnings of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Griffith University Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the overall organisation at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology along with the increase of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Griffith University Case Study Solution consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Griffith University Case Study Analysis include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 runs in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Griffith University Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Griffith University Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an instant service to prevent the decreasing market growth. For that reason, introduction of digital publishing could show to be an instant solution with low quantity of threat for the company. Nevertheless, the business might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must initially collects the data associated with the customer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. After that, the company should decide one potential segment for its initial offering. It ought to gather research study that how it might distinguish its digital publishing from the existing rivals' items. The actions above the business need to go for the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a danger to the company's long term existence, but the situation can be controlled by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
