Helping Employees Realize Their Dreams Case Study Solution and Analysis
Helping Employees Realize Their Dreams Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering details, processing info and interaction services. Major business sections of the business consist of; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports etc. Helping Employees Realize Their Dreams Case Study Analysis has actually ended up being a specialized information company and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing market in general and Helping Employees Realize Their Dreams Case Study Solution in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Helping Employees Realize Their Dreams Case Study Analysis has certain strengths that can be used to minimize the hazards, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Helping Employees Realize Their Dreams Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position permits the company to think about several development opportunities with no worry of raising fund externally.
Together with the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its advancement program. The weaknesses of Helping Employees Realize Their Dreams Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth plans to avoid its dependence over the Chinese markets to attain long term growth.
The development of the publishing industry is decreasing since 2008, impacting Helping Employees Realize Their Dreams Case Study Solution as well, but the development could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competitors in the publishing market has postured certain dangers to Helping Employees Realize Their Dreams Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Helping Employees Realize Their Dreams Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the consumer base.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly total earnings of Helping Employees Realize Their Dreams Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in bring in a large number of clients at a prospective price.
In addition to it, the 2nd graph which shows the annual development in the Helping Employees Realize Their Dreams Case Study Analysis total properties, reveals that the company is quite efficient in adding worth to its assets through its revenues. The development in properties reveals that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis concerning the circulation of total revenues of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a prospective growth to achieve its future development objective.
PESTEL analysis might be performed to discover the various external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Helping Employees Realize Their Dreams Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading useful products and so on. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Helping Employees Realize Their Dreams Case Study Help. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting Helping Employees Realize Their Dreams Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging 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 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 examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Helping Employees Realize Their Dreams Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 needs high quality documents at competitive costs.
CMP runs in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Helping Employees Realize Their Dreams Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily 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 6th in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company need an instant option to avoid the declining market development. Intro of digital publishing could show to be an instant option with low quantity of danger for the company. However, the company could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially gathers the data connected to the consumer need, the possible markets, the government regulations and the data related to the rivals presented in the market. After that, the business should decide one potential segment for its initial offering. It must collect research that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the business should opt for the initial offering. If the initial offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining considering that 2008, revealing a hazard to the company's long term existence, however the circumstance can be managed by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.