Griffith University Case Study Solution and Analysis
Griffith University Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing info and communication services. Significant company sections of the business include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. Griffith University Case Study Solution has ended up being a specialized information provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Griffith University Case Study Help in particular. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Griffith University Case Study Analysis has certain strengths that can be made use of to decrease the hazards, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Griffith University Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong monetary position allows the business to think about several development chances without any worry of raising fund externally.
Along with the strengths, the business has certain 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 innovation publishing company, 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 development. It should propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is declining since 2008, affecting Griffith University Case Study Analysis also, however the growth could be revived by availing certain opportunities provided 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 recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Griffith University Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Griffith University Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry along with existence of high competition increases the danger of losing the client base.
Due to lack of information, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly overall revenues of Griffith University Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in drawing in a big number of consumers at a potential price.
Along with it, the 2nd graph which shows the yearly growth in the Griffith University Case Study Analysis total assets, shows that the business is quite effective in including worth to its possessions through its incomes. The growth in assets reveals that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis concerning the circulation of total profits of the company. Major part of the earnings of CMP comes 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 possible development to accomplish its future development objective.
PESTEL analysis might be performed to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting Griffith University Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Griffith University Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful materials etc. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Griffith University Case Study Analysis. Nevertheless, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Environmental forces impacting Griffith University Case Study Analysis 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 utilized while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the digital libraries on particular websites. The changing customer choices towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing industry 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 entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Griffith University Case Study Analysis consist of the providers of the paper for releasing documents. 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 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 prices.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Griffith University Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a significant focus on academic publications. CIP acts as a risk 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 Griffith University Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Griffith University Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the decreasing industry growth. The company might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data related to the customer demand, the prospective markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining since 2008, showing a risk to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.