Individual Assignment 3 Case Study Solution and Analysis
Individual Assignment 3 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Individual Assignment 3 Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Individual Assignment 3 Case Study Analysis has specific strengths that can be made use of to reduce the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Individual Assignment 3 Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the business to consider numerous development chances without any worry of raising fund externally.
Together with the strengths, the company has specific weak points which might increase restrictions for the company in executing its development program. The weaknesses of Individual Assignment 3 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing market is decreasing because 2008, affecting Individual Assignment 3 Case Study Help as well, however the development could be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has postured certain dangers to Individual Assignment 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Individual Assignment 3 Case Study Help due to the consumer shift towards digital libraries.
• The presence 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 customer base by using specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with existence of high competitors increases the threat of losing the client base.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual total profits of Individual Assignment 3 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in attracting a big number of customers at a possible cost.
Together with it, the 2nd graph which reveals the annual development in the Individual Assignment 3 Case Study Help overall assets, shows that the business is rather effective in including worth to its properties through its incomes. The development in possessions reveals that the overall value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis relating to the circulation of total earnings of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a prospective growth to achieve its future development objective.
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset 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. For that reason, it might be said that the general political forces affecting Individual Assignment 3 Case Study Solution service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful products etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Individual Assignment 3 Case Study Help. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental forces affecting Individual Assignment 3 Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the digital libraries on particular websites. The altering customer choices towards digital learning increase the risk of replacement for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Individual Assignment 3 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in a highly competitive market 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. Major competitors of Individual Assignment 3 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
As the choices are shifting towards digital publishing and the business need an instant service to prevent the declining industry development. The business might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data associated with the customer need, the potential markets, the government guidelines and the data associated with the rivals provided in the market. After that, the business must choose one possible sector for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing rivals' products. After all the actions above the business need to go for the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is decreasing since 2008, revealing a threat to the business's long term existence, however the scenario can be managed by considering an advancement plan in the future. The company could think about presenting 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.