Iceland Small Fish In A Global Pond 2 Case Study Solution and Analysis
Introduction
Iceland Small Fish In A Global Pond 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Iceland Small Fish In A Global Pond 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Iceland Small Fish In A Global Pond 2 Case Study Solution has certain strengths that can be utilized to reduce the hazards, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Iceland Small Fish In A Global Pond 2 Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the business to think about a number of development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Iceland Small Fish In A Global Pond 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Iceland Small Fish In A Global Pond 2 Case Study Analysis as well, however the growth might be revived by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually posed certain risks to Iceland Small Fish In A Global Pond 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Iceland Small Fish In A Global Pond 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry together with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the annual overall incomes of Iceland Small Fish In A Global Pond 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite efficient in bring in a large number of clients at a prospective rate.
In addition to it, the second graph which reveals the yearly growth in the Iceland Small Fish In A Global Pond 2 Case Study Help total properties, reveals that the company is rather efficient in including value to its assets through its revenues. The growth in properties shows that the total worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the distribution of overall profits of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out useful products etc. China has the highest population in the world with a high population development, showing the increasing variety of customers of the Iceland Small Fish In A Global Pond 2 Case Study Analysis. However, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Iceland Small Fish In A Global Pond 2 Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files provided in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Iceland Small Fish In A Global Pond 2 Case Study Help consist of the providers of the paper for releasing documents. 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 Buyer.
Negotiating power of buyer 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 requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Iceland Small Fish In A Global Pond 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Iceland Small Fish In A Global Pond 2 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger 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 business sections to the new one can lead the business to lose demand of its items in the market.
Recommendations
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 achieve its future advancement. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the declining market growth. Therefore, intro of digital publishing could prove to be an immediate service with low amount of risk for the business. Nevertheless, the company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business needs to first gathers the data associated with the consumer need, the possible markets, the government policies and the data connected to the rivals presented in the market. After that, the business should choose one prospective section for its initial offering. It ought to collect research study that how it might separate its digital publishing from the existing competitors' products. After all the actions above the business need to choose the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, showing a threat to the company's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
