Jaypee Cement Amalgamation Of Two Brands Case Study Solution and Analysis
Jaypee Cement Amalgamation Of Two Brands Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing info and interaction services. Significant service sectors of the company consist of; books, regulars, consultancy and distribution. The company has a large item portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Jaypee Cement Amalgamation Of Two Brands Case Study Help has actually become a specialized information supplier and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and Jaypee Cement Amalgamation Of Two Brands Case Study Help in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement 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 used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Jaypee Cement Amalgamation Of Two Brands Case Study Solution has certain strengths that can be utilized to lower the hazards, 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 Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position permits the company to consider numerous development chances without any worry of raising fund externally.
Along with the strengths, the company has specific weak points which might increase restraints for the company in executing its advancement program. The weak points of Jaypee Cement Amalgamation Of Two Brands Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term development.
The growth of the publishing market is decreasing because 2008, affecting Jaypee Cement Amalgamation Of Two Brands Case Study Analysis as well, however the growth could be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has actually presented particular hazards to Jaypee Cement Amalgamation Of Two Brands Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Jaypee Cement Amalgamation Of Two Brands Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry together with presence of high competitors increases the danger of losing the consumer base.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The general financial performance of the company could be evaluated by using the charts offered in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Jaypee Cement Amalgamation Of Two Brands Case Study Help is growing and the business is rather efficient in attracting a a great deal of clients at a possible rate.
In addition to it, the second chart which shows the yearly development in the Jaypee Cement Amalgamation Of Two Brands Case Study Analysis overall properties, shows that the business is rather efficient in adding value to its assets through its earnings. The development in properties shows that the overall worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided information might be the analysis relating to the distribution of overall revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible development to accomplish its future development objective.
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces affecting Jaypee Cement Amalgamation Of Two Brands Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Jaypee Cement Amalgamation Of Two Brands Case Study Help in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the total organisation at CPM. China's financial conditions are quite favorable 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 needs to focus on digital publishing to meet the changing customer choices.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental forces affecting Jaypee Cement Amalgamation Of Two Brands Case Study Solution consists of the concerns of environmental neighborhoods over the usage 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 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Jaypee Cement Amalgamation Of Two Brands Case Study Help include the providers of the paper for releasing documents. 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 Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Jaypee Cement Amalgamation Of Two Brands Case Study Help include;.
• Chemical Market 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 present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to 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 business need an instant option to avoid the declining market growth. Introduction of digital publishing might prove to be an instant service with low amount of risk for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the data related to the customer need, the potential markets, the federal government regulations and the information associated with the rivals presented in the market. After that, the business should choose one potential segment for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the company ought to go for the preliminary offering. If the preliminary offering shows a success, the business ought to choose the other markets. In this method the business would have the ability to implement its digital publishing program.
The growth of the publishing market is decreasing given that 2008, revealing a threat to the company's long term presence, but the situation can be managed by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.