Individual Assignment 3 Case Study Solution and Analysis
Intro
Individual Assignment 3 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Individual Assignment 3 Case Study Analysis has actually 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 general and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 situation? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Individual Assignment 3 Case Study Help has specific strengths that can be made use of to lower the hazards, conquer the weakness 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 market i.e. 60 years allows the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the business to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Individual Assignment 3 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Individual Assignment 3 Case Study Solution as well, but the growth might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually presented specific dangers to Individual Assignment 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Individual Assignment 3 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal 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 techniques like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the business might be evaluated by using the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Individual Assignment 3 Case Study Analysis is growing and the business is quite effective in attracting a large number of customers at a possible cost.
In addition to it, the 2nd chart which shows the annual growth in the Individual Assignment 3 Case Study Solution overall assets, shows that the business is quite efficient in including value to its possessions through its incomes. The development in assets shows that the total worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the distribution of overall revenues of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the company and the recent 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 might have a considerable effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Individual Assignment 3 Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books impact the total company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products and so on. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Individual Assignment 3 Case Study Analysis. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Individual Assignment 3 Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the files presented in the digital libraries on particular sites. The changing customer choices towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Individual Assignment 3 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Individual Assignment 3 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an instant option to prevent the decreasing industry growth. The company could also 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 company must first gathers the data related to the consumer demand, the possible markets, the federal government policies and the information associated with the rivals presented in the market. After that, the business needs to decide one possible section for its initial offering. It needs to collect research study that how it might distinguish its digital publishing from the existing rivals' products. The steps above the business must go for the initial offering. If the initial offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
