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High Speed Rail In Portugal Case Study Solution and Analysis


Introduction

High Speed Rail In Portugal Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.

Critical Issues

Although, High Speed Rail In Portugal Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These factors include;

• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
Executive Summary
The transformation of the macro markets have raised numerous 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 abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


High Speed Rail In Portugal Case Study Solution has particular strengths that can be used to lower the risks, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;

• The long term experience of High Speed Rail In Portugal Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the business to consider several development chances without any fear of raising fund externally.

Weak points

Along with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its development program. The weaknesses of High Speed Rail In Portugal Case Study Analysis are offered as follows;

• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing industry is declining because 2008, impacting High Speed Rail In Portugal Case Study Analysis as well, but the growth could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;

• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.

Threats

The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain hazards to High Speed Rail In Portugal Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might result in declining market share of High Speed Rail In Portugal Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the threat of losing the consumer base.

Financial Analysis.
Swot Analysis
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. However, the general monetary efficiency of the business could be analyzed by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of High Speed Rail In Portugal Case Study Solution is growing and the company is quite effective in attracting a large number of consumers at a prospective rate.

In addition to it, the 2nd graph which reveals the annual growth in the High Speed Rail In Portugal Case Study Analysis total assets, reveals that the business is rather efficient in including worth to its assets through its profits. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).

Another financial analysis of the company using the given data could be the analysis concerning the distribution of overall revenues of the company. Major part of the incomes 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 service sectors with a potential growth to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in general and the High Speed Rail In Portugal Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the overall business at CPM. China's financial 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 development, the customer's preferences towards checking out useful products and so on. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the High Speed Rail In Portugal Case Study Help. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.

Technological.

Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces affecting High Speed Rail In Portugal Case Study Analysis consists of the concerns of environmental 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 must not be damaging for the environment.

Legal.

Legal policies 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 Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.

Market Analysis (Porter's 5 Forces Design).

Porter's 5 Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.

Threat of New Entrants.

Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.

Danger of Replacement.

Risk of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files presented in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of replacement for the market.

Competitive Rivalry.

Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.

Bargaining Power of Provider.

The major suppliers of the High Speed Rail In Portugal Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.

Rivals Analysis.

CMP runs in a highly competitive market with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of High Speed Rail In Portugal Case Study Analysis include;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts 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 market share of CMP easily in the present market scenario.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 organisation sections to the new one can lead the business to lose need of its items in the market.

Suggestions

With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an instant service to prevent the decreasing industry growth. For that reason, introduction of digital publishing could prove to be an immediate option with low amount of danger for the business. The company could likewise consider the expansion program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its item portfolio, the business should initially gathers the data related to the customer need, the potential markets, the government policies and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.

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