Identification Of The Key Issues For The Target Market 2 Case Study Solution and Analysis
Intro
Identification Of The Key Issues For The Target Market 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Identification Of The Key Issues For The Target Market 2 Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing firms 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 numerous concerns 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 abilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Identification Of The Key Issues For The Target Market 2 Case Study Help has particular strengths that can be utilized to lower the threats, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Identification Of The Key Issues For The Target Market 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the business to consider numerous advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Identification Of The Key Issues For The Target Market 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, affecting Identification Of The Key Issues For The Target Market 2 Case Study Analysis also, however the development could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has actually presented certain risks to Identification Of The Key Issues For The Target Market 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Identification Of The Key Issues For The Target Market 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. The general monetary efficiency of the company might be analyzed by using the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Identification Of The Key Issues For The Target Market 2 Case Study Solution is growing and the business is rather effective in attracting a large number of consumers at a possible rate.
Along with it, the second graph which reveals the annual growth in the Identification Of The Key Issues For The Target Market 2 Case Study Analysis overall properties, reveals that the business is rather efficient in including worth to its properties through its profits. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of overall earnings of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Identification Of The Key Issues For The Target Market 2 Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Identification Of The Key Issues For The Target Market 2 Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the general business at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Identification Of The Key Issues For The Target Market 2 Case Study Help includes the concerns of ecological neighborhoods 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 harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the virtual libraries on certain websites. The altering customer choices towards digital learning increase the risk of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Identification Of The Key Issues For The Target Market 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Identification Of The Key Issues For The Target Market 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and second in different market sections, with a significant concentrate on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Identification Of The Key Issues For The Target Market 2 Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Identification Of The Key Issues For The Target Market 2 Case Study Analysis 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
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 company sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the decreasing industry development. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to first collects the data related to the customer demand, the possible markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a danger to the business's long term presence, however the situation can be managed by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
