Identification Of The Key Issues For The Target Market Case Study Solution and Analysis
Identification Of The Key Issues For The Target Market Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Identification Of The Key Issues For The Target Market Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions 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 capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Identification Of The Key Issues For The Target Market Case Study Solution has specific strengths that can be utilized to decrease the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Identification Of The Key Issues For The Target Market Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong financial position allows the company to consider a number of advancement opportunities without any worry of raising fund externally.
In addition to the strengths, the company has certain weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of Identification Of The Key Issues For The Target Market Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, 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 growth. It should propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing industry is declining since 2008, impacting Identification Of The Key Issues For The Target Market Case Study Help as well, however the growth could be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain threats to Identification Of The Key Issues For The Target Market Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Identification Of The Key Issues For The Target Market Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competition increases the threat of losing the consumer base.
The business has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the total monetary efficiency of the company could be evaluated by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Identification Of The Key Issues For The Target Market Case Study Solution is growing and the company is quite efficient in drawing in a large number of clients at a prospective rate.
Along with it, the second chart which shows the yearly growth in the Identification Of The Key Issues For The Target Market Case Study Help total assets, shows that the business is rather effective in adding value to its assets through its earnings. The development in assets shows that the overall value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis concerning the distribution of total incomes of the company. Major 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 could move towards other organisation sectors with a possible development to accomplish its future development goal.
PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal 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 overall political forces affecting CMP company 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 Identification Of The Key Issues For The Target Market Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the economic policies associated with the import of books impact the overall organisation at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out helpful products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Identification Of The Key Issues For The Target Market Case Study Solution. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Identification Of The Key Issues For The Target Market Case Study Solution includes the concerns of ecological 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 needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Identification Of The Key Issues For The Target Market Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Identification Of The Key Issues For The Target Market Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a major concentrate on academic publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Identification Of The Key Issues For The Target Market Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its products in the market.
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the decreasing industry growth. The company could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information connected to the consumer demand, the potential markets, the government policies and the data connected to the competitors presented in the market. After that, the business must decide one potential section for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business should choose the initial offering. If the initial offering proves a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, showing a risk to the company's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.