Industry Monitoring Report Case Study Solution and Analysis
Intro
Industry Monitoring Report Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and Industry Monitoring Report Case Study Solution in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining 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 several 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 capabilities of the business could be utilized 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
Industry Monitoring Report Case Study Help has particular strengths that can be utilized to decrease the threats, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Industry Monitoring Report Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position allows the company to consider a number of advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase restraints for the company in implementing its advancement program. The weak points of Industry Monitoring Report Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Industry Monitoring Report Case Study Help as well, however the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually posed particular hazards to Industry Monitoring Report Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Industry Monitoring Report Case Study Solution due to the consumer shift towards virtual 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 get a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competitors increases the threat of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be computed. However, the total financial efficiency of the company might be examined by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Industry Monitoring Report Case Study Analysis is growing and the business is rather efficient in drawing in a large number of customers at a potential price.
Along with it, the second chart which reveals the annual development in the Industry Monitoring Report Case Study Help total assets, shows that the company is quite effective in adding value to its assets through its incomes. The development in properties shows that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis concerning the distribution of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind 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. It might be said that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Industry Monitoring Report Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the total organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative products and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Industry Monitoring Report Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Industry Monitoring Report Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines 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 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Industry Monitoring Report Case Study Help include 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 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 marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Industry Monitoring Report Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Industry Monitoring Report Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must initially collects the data related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a hazard to the business's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
