Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution and Analysis
Introduction
Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Growing Pains Entrepreneurship In A State Controlled Economy Case Study Help in particular. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 abilities of the business could be used 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
Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution has particular strengths that can be utilized to lower the risks, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Growing Pains Entrepreneurship In A State Controlled Economy Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position enables the company to consider numerous development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restraints for the business in implementing its development program. The weak points of Growing Pains Entrepreneurship In A State Controlled Economy Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution as well, however the development could be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has presented certain threats to Growing Pains Entrepreneurship In A State Controlled Economy Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution due to the customer 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 rivals can gain a strong customer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall incomes of Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is rather effective in bring in a large number of customers at a potential cost.
In addition to it, the second chart which reveals the yearly development in the Growing Pains Entrepreneurship In A State Controlled Economy Case Study Help total possessions, shows that the business is rather efficient in including worth to its assets through its profits. The development in properties shows that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the distribution of overall revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Growing Pains Entrepreneurship In A State Controlled Economy Case Study Analysis service are high. The government policies concerning the publishing sector are likewise 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 earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative products etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of customers of the Growing Pains Entrepreneurship In A State Controlled Economy Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Growing Pains Entrepreneurship In A State Controlled Economy Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Growing Pains Entrepreneurship In A State Controlled Economy Case Study Help include 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 Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in various market sections, with a significant concentrate on educational publications. CIP serves as a danger 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 Growing Pains Entrepreneurship In A State Controlled Economy Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant service to prevent the decreasing market development. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the consumer demand, the prospective markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
