In Search Of The Secrets To Longevity Case Study Solution and Analysis
Intro
In Search Of The Secrets To Longevity Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing information and communication services. Significant service segments of the company consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major items consist of books, regulars, online media, exhibits, research reports and so on. In Search Of The Secrets To Longevity Case Study Help has ended up being a specialized details service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and In Search Of The Secrets To Longevity Case Study Solution in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
In Search Of The Secrets To Longevity Case Study Analysis has particular strengths that can be used to lower the threats, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of In Search Of The Secrets To Longevity Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position allows the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase constraints for the business in implementing its advancement program. The weak points of In Search Of The Secrets To Longevity Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting In Search Of The Secrets To Longevity Case Study Help too, but the growth might be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer 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 vast financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has posed specific risks to In Search Of The Secrets To Longevity Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of In Search Of The Secrets To Longevity Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP might not be determined. The general monetary efficiency of the company could be analyzed by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of In Search Of The Secrets To Longevity Case Study Help is growing and the business is rather effective in bring in a a great deal of customers at a possible cost.
In addition to it, the second graph which shows the yearly development in the In Search Of The Secrets To Longevity Case Study Solution overall properties, shows that the company is quite effective in adding worth to its properties through its earnings. The development in properties reveals that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the circulation of overall incomes of the business. Huge 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 could move towards other organisation sections with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered 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 federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting In Search Of The Secrets To Longevity Case Study Analysis organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting In Search Of The Secrets To Longevity Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the virtual libraries on particular websites. The altering customer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the In Search Of The Secrets To Longevity Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry 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 costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of In Search Of The Secrets To Longevity Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a significant concentrate on academic publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of In Search Of The Secrets To Longevity Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as In Search Of The Secrets To Longevity Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the decreasing market development. For that reason, intro of digital publishing could prove to be an instant option with low amount of risk for the company. The business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should first collects the data related to the consumer demand, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a risk to the business's long term presence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
