It Acquisitions Management Case Study Solution and Analysis
It Acquisitions Management Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing details and interaction services. Significant business sectors of the company include; books, regulars, consultancy and circulation. The company has a large item portfolio and its major products include books, regulars, online media, exhibits, research reports etc. It Acquisitions Management Case Study Solution has ended up being a specialized details service provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and It Acquisitions Management Case Study Help in specific. These elements include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
It Acquisitions Management Case Study Analysis has particular strengths that can be made use of to decrease the dangers, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of It Acquisitions Management Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position permits the company to consider several advancement chances without any worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of It Acquisitions Management Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
The development of the publishing market is decreasing since 2008, affecting It Acquisitions Management Case Study Help as well, but the development might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competition in the publishing market has posed specific risks to It Acquisitions Management Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of It Acquisitions Management Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
The company has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be calculated. The overall financial efficiency of the company might be evaluated by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of It Acquisitions Management Case Study Help is growing and the business is quite efficient in drawing in a large number of customers at a prospective cost.
Along with it, the 2nd chart which reveals the annual growth in the It Acquisitions Management Case Study Help overall possessions, shows that the company is rather effective in adding value to its properties through its incomes. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the circulation of total profits of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a potential development to accomplish its future advancement goal.
PESTEL analysis could be carried out to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect 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 directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces affecting It Acquisitions Management Case Study Help business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the It Acquisitions Management Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. 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 overall organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Ecological forces impacting It Acquisitions Management Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the It Acquisitions Management Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of It Acquisitions Management Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as It Acquisitions Management Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-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 industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an instant option to avoid the decreasing market development. Therefore, intro of digital publishing might prove to be an instant option with low amount of danger for the company. However, the business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company ought to initially gathers the data related to the customer need, the potential markets, the federal government guidelines and the data 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 method the company would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, revealing a risk to the business's long term existence, however the situation can be controlled by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.