Jefferson County D February Of 2008 Case Study Solution and Analysis
Jefferson County D February Of 2008 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Jefferson County D February Of 2008 Case Study Solution in specific. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Jefferson County D February Of 2008 Case Study Analysis has particular strengths that can be utilized to lower the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Jefferson County D February Of 2008 Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong monetary position allows the business to consider a number of development opportunities with no worry of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Jefferson County D February Of 2008 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing market is declining given that 2008, impacting Jefferson County D February Of 2008 Case Study Analysis also, but the development could be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competitors in the publishing market has presented certain dangers to Jefferson County D February Of 2008 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Jefferson County D February Of 2008 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the hazard of losing the consumer base.
The company has a rather competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. The general monetary performance of the company could be analyzed by using the charts offered in the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Jefferson County D February Of 2008 Case Study Solution 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 chart which reveals the annual growth in the Jefferson County D February Of 2008 Case Study Help overall properties, shows that the business is rather efficient in including value to its properties through its earnings. The growth in possessions reveals that the total value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of total earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential development to achieve its future advancement goal.
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be said that the total political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Jefferson County D February Of 2008 Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the total business at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative products etc. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Jefferson County D February Of 2008 Case Study Analysis. However, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Jefferson County D February Of 2008 Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to 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 initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Jefferson County D February Of 2008 Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 purchasers requires high quality files at competitive prices.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Jefferson County D February Of 2008 Case Study Help include;.
• 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 could wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Jefferson County D February Of 2008 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company require an instant option to avoid the decreasing industry growth. Therefore, intro of digital publishing could show to be an instant service with low amount of risk for the company. The business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must initially gathers the information connected to the customer need, the possible markets, the federal government policies and the data connected to the rivals provided in the market. After that, the business must choose one potential section for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing competitors' products. The steps above the business need to go for the preliminary offering. If the preliminary offering shows a success, the business needs to opt for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, however the situation can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.