Impact Of Smoking Among Teenagers Case Study Solution and Analysis
Introduction
Impact Of Smoking Among Teenagers Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and Impact Of Smoking Among Teenagers Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Impact Of Smoking Among Teenagers Case Study Solution has particular strengths that can be made use of to reduce the risks, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Impact Of Smoking Among Teenagers Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position permits the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which could increase constraints for the business in executing its development program. The weaknesses of Impact Of Smoking Among Teenagers Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Impact Of Smoking Among Teenagers Case Study Solution as well, but the growth could be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has positioned particular threats to Impact Of Smoking Among Teenagers Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Impact Of Smoking Among Teenagers Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP might not be determined. The total financial efficiency of the business might be examined by utilizing the charts provided in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Impact Of Smoking Among Teenagers Case Study Analysis is growing and the company is quite efficient in bring in a large number of clients at a prospective price.
Together with it, the second chart which reveals the annual development in the Impact Of Smoking Among Teenagers Case Study Help total possessions, shows that the company is quite efficient in including value to its properties through its earnings. The development in possessions shows that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the circulation of total revenues of the business. Major part of the profits 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 service segments with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the total political forces impacting Impact Of Smoking Among Teenagers Case Study Help service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Impact Of Smoking Among Teenagers Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the total organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Impact Of Smoking Among Teenagers Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Impact Of Smoking Among Teenagers Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Impact Of Smoking Among Teenagers Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Impact Of Smoking Among Teenagers Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall profits 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 opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition 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 products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an immediate solution to prevent the decreasing industry growth. For that reason, intro of digital publishing could show to be an immediate service with low amount of risk for the business. However, the company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the information related to the customer need, the potential markets, the government policies and the information connected to the rivals presented in the market. After that, the business must decide one potential section for its initial offering. It needs to gather research study that how it could distinguish its digital publishing from the existing competitors' products. After all the steps above the business need to go for the initial offering. If the initial offering shows a success, the company must go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a threat to the company's long term existence, however the situation can be controlled by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
