Individual Case Assignment Cutting Edge Case Case Study Solution and Analysis
Individual Case Assignment Cutting Edge Case 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 information company and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing market in general and Individual Case Assignment Cutting Edge Case Case Study Solution in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation 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 situation? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Individual Case Assignment Cutting Edge Case Case Study Help has certain strengths that can be made use of to reduce the dangers, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Individual Case Assignment Cutting Edge Case Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position enables the company to consider a number of advancement chances with no worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which could increase constraints for the business in implementing its development program. The weak points of Individual Case Assignment Cutting Edge Case Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is decreasing given that 2008, impacting Individual Case Assignment Cutting Edge Case Case Study Solution also, however the growth might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing industry has presented certain hazards to Individual Case Assignment Cutting Edge Case Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Individual Case Assignment Cutting Edge Case Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the client base.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. The general financial performance of the company could be analyzed by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Individual Case Assignment Cutting Edge Case Case Study Help is growing and the company is quite effective in drawing in a large number of customers at a prospective cost.
In addition to it, the second chart which reveals the yearly development in the Individual Case Assignment Cutting Edge Case Case Study Solution overall possessions, shows that the business is rather efficient in adding value to its possessions through its earnings. The development in properties reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible development to attain its future advancement objective.
PESTEL analysis might be conducted to find out the numerous external forces impacting the efficiency of the business and the current trends 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 considerable influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Individual Case Assignment Cutting Edge Case Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general organisation at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Individual Case Assignment Cutting Edge Case Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents provided in the virtual libraries on particular sites. The altering customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Individual Case Assignment Cutting Edge Case Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Individual Case Assignment Cutting Edge Case Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Individual Case Assignment Cutting Edge Case Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate option to prevent the declining market development. Intro of digital publishing could prove to be an immediate solution with low amount of threat for the company. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially gathers the information related to the customer need, the potential markets, the federal government regulations and the data connected to the competitors presented in the market. After that, the company needs to decide one potential sector for its preliminary offering. It ought to collect research that how it could distinguish its digital publishing from the existing competitors' products. After all the actions above the company should go for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining since 2008, revealing a hazard to the company's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.