Intellectual Property Intermediaries Case Study Solution and Analysis
Intellectual Property Intermediaries Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing info and communication services. Significant business segments of the company include; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. Intellectual Property Intermediaries Case Study Solution has become a specialized info service provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Intellectual Property Intermediaries Case Study Help in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions 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 business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Intellectual Property Intermediaries Case Study Help has specific strengths that can be made use of to decrease the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Intellectual Property Intermediaries Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Intellectual Property Intermediaries Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business 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 should propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing market is declining given that 2008, affecting Intellectual Property Intermediaries Case Study Analysis as well, but the development might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has presented specific threats to Intellectual Property Intermediaries Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Intellectual Property Intermediaries Case Study Help due to the consumer shift towards virtual 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 competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the hazard of losing the customer base.
The company has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. However, the overall financial performance of the business could be analyzed by using the graphs given up the case Appendices. It could be examined from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Intellectual Property Intermediaries Case Study Help is growing and the business is rather efficient in attracting a a great deal of clients at a potential rate.
In addition to it, the 2nd graph which shows the yearly development in the Intellectual Property Intermediaries Case Study Help overall properties, shows that the company is quite efficient in adding value to its properties through its profits. The growth in possessions shows that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis regarding the circulation of overall profits 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 service sectors with a prospective development to attain its future development goal.
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces impacting Intellectual Property Intermediaries Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal regulations 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 5 Forces Design could be utilized to evaluate the beauty 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 potential development in the market tends to draw in new entrants to the publishing market. However, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the virtual libraries on specific websites. The altering consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Intellectual Property Intermediaries Case Study Solution include the providers of the paper for publishing files. 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 Buyer.
Negotiating 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 marketplace saturation, the buyers needs high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Intellectual Property Intermediaries Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in numerous market segments, with a significant focus on academic publications. 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 Intellectual Property Intermediaries Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business 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 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 need an instant solution to avoid the decreasing industry development. For that reason, intro of digital publishing might show to be an instant service with low quantity of risk for the business. The business might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer need, the prospective markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could think about 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.