Juner New Materials On The Road To Ipo Case Study Solution and Analysis
Introduction
Juner New Materials On The Road To Ipo Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing details and interaction services. Significant organisation sections of the company consist of; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Juner New Materials On The Road To Ipo Case Study Solution has actually become a specialized information provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and Juner New Materials On The Road To Ipo Case Study Solution in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Juner New Materials On The Road To Ipo Case Study Solution has specific strengths that can be made use of to decrease the risks, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Juner New Materials On The Road To Ipo Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the business to think about a number of advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Juner New Materials On The Road To Ipo Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Juner New Materials On The Road To Ipo Case Study Help also, however the growth might be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has posed specific threats to Juner New Materials On The Road To Ipo Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Juner New Materials On The Road To Ipo Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market together with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. Nevertheless, the total monetary efficiency of the business might be examined by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Juner New Materials On The Road To Ipo Case Study Analysis is growing and the company is rather efficient in drawing in a a great deal of clients at a possible price.
In addition to it, the second chart which shows the annual growth in the Juner New Materials On The Road To Ipo Case Study Analysis total assets, reveals that the company is quite effective in adding worth to its possessions 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 given information could be the analysis relating to the circulation of overall profits of the business. Huge part of the revenues 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 service segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence 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 assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Juner New Materials On The Road To Ipo Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the general service at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out helpful products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Juner New Materials On The Road To Ipo Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Juner New Materials On The Road To Ipo Case Study Help includes the concerns of ecological neighborhoods 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition 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 rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Juner New Materials On The Road To Ipo Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Juner New Materials On The Road To Ipo Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the declining industry growth. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to first collects the data associated with the customer demand, the prospective markets, the federal government policies and the information associated with the competitors presented in the market. After that, the company needs to decide one possible sector for its preliminary offering. It must collect research study that how it might separate its digital publishing from the existing rivals' items. The actions above the business need to go for the initial offering. The business should go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
