Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution and Analysis
Introduction
Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in basic and Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 circumstance? Do the long important experience, technical resources and the capabilities 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
Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution has certain strengths that can be used to lower the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Help Our Annual Meeting May Be Hijacked By Activists Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position allows the business to think about a number of development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Help Our Annual Meeting May Be Hijacked By Activists Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Help Our Annual Meeting May Be Hijacked By Activists Case Study Help also, however the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has presented specific hazards to Help Our Annual Meeting May Be Hijacked By Activists Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be calculated. Nevertheless, the total monetary efficiency of the business might be examined by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Help Our Annual Meeting May Be Hijacked By Activists Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of consumers at a prospective rate.
Along with it, the 2nd chart which reveals the annual growth in the Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution overall assets, reveals that the business is quite efficient in adding value to its properties through its earnings. The development in possessions shows that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the distribution of overall profits of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces affecting Help Our Annual Meeting May Be Hijacked By Activists Case Study Help business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the digital libraries on certain websites. The altering customer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Help Our Annual Meeting May Be Hijacked By Activists Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sectors, with a major focus on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Help Our Annual Meeting May Be Hijacked By Activists Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate option to avoid the declining market development. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer demand, the potential markets, the federal government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a hazard to the company's long term presence, but the circumstance can be managed by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
