Groupe Ariel S A Case Study Solution and Analysis
Intro
Groupe Ariel S A Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details service provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and Groupe Ariel S A Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns 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 abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Groupe Ariel S A Case Study Help has particular strengths that can be utilized to minimize the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Groupe Ariel S A Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restrictions for the company in implementing its development program. The weak points of Groupe Ariel S A Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Groupe Ariel S A Case Study Help as well, however the development might be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has presented certain dangers to Groupe Ariel S A Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Groupe Ariel S A Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be determined. Nevertheless, the total monetary performance of the company might be evaluated by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Groupe Ariel S A Case Study Analysis is growing and the company is rather efficient in drawing in a large number of consumers at a possible rate.
Together with it, the second chart which shows the yearly development in the Groupe Ariel S A Case Study Solution overall assets, reveals that the business is quite efficient in including worth to its assets through its incomes. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis regarding the circulation of total profits of the business. Huge part of the revenues 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 service sectors with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Groupe Ariel S A Case Study Analysis service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of consumers of the Groupe Ariel S A Case Study Solution. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Groupe Ariel S A Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence 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. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Groupe Ariel S A Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Groupe Ariel S A Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major concentrate on academic publications. CIP functions 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 could wean the marketplace share of Groupe Ariel S A Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as Groupe Ariel S A Case Study Solution and CIP. It is also 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
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 service sections to the new one can lead the business 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 recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an instant service to prevent the decreasing industry growth. Therefore, introduction of digital publishing might show to be an immediate solution with low quantity of danger for the company. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data related to the consumer need, the potential markets, the federal government guidelines and the information related to the rivals provided in the market. After that, the business ought to choose one possible sector for its preliminary offering. It needs to gather research study that how it could differentiate its digital publishing from the existing competitors' items. The steps above the business should go for the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a threat to the company's long term presence, however the circumstance can be managed by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
