Jaypee Cement Amalgamation Of Two Brands Case Study Solution and Analysis
Intro
Jaypee Cement Amalgamation Of Two Brands Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Jaypee Cement Amalgamation Of Two Brands Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of 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 business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Jaypee Cement Amalgamation Of Two Brands Case Study Help has certain strengths that can be made use of to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Jaypee Cement Amalgamation Of Two Brands Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the business to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Jaypee Cement Amalgamation Of Two Brands Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Jaypee Cement Amalgamation Of Two Brands Case Study Analysis as well, however the growth could be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has posed specific dangers to Jaypee Cement Amalgamation Of Two Brands Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Jaypee Cement Amalgamation Of Two Brands Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry along with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be determined. However, the overall monetary efficiency of the business could be analyzed by using the charts given up 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 growth rate, revealing that the annual demand of the products of Jaypee Cement Amalgamation Of Two Brands Case Study Analysis is growing and the company is quite effective in drawing in a a great deal of customers at a potential cost.
In addition to it, the second chart which reveals the annual development in the Jaypee Cement Amalgamation Of Two Brands Case Study Help overall properties, reveals that the business is quite efficient in adding value to its possessions through its earnings. The development in assets reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis concerning the distribution of overall revenues of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be said that the overall political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Jaypee Cement Amalgamation Of Two Brands Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the general business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology together with the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Jaypee Cement Amalgamation Of Two Brands Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Jaypee Cement Amalgamation Of Two Brands Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Jaypee Cement Amalgamation Of Two Brands Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the decreasing industry growth. For that reason, introduction of digital publishing might show to be an instant option with low amount of danger for the business. Nevertheless, the company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information related to the consumer need, the potential markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, showing a risk to the business's long term presence, but the situation can be controlled by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
