Just An Mou Or A Real Deal Case Study Solution and Analysis
Just An Mou Or A Real Deal Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing details and interaction services. Significant organisation segments of the company consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Just An Mou Or A Real Deal Case Study Help has ended up being a specialized info company and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and Just An Mou Or A Real Deal Case Study Analysis in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Just An Mou Or A Real Deal Case Study Analysis has specific strengths that can be utilized to reduce the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Just An Mou Or A Real Deal Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong financial position allows the company to think about a number of advancement chances without any worry of raising fund externally.
Together with the strengths, the business has specific weak points which could increase restrictions for the business in executing its advancement program. The weak points of Just An Mou Or A Real Deal Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining because 2008, impacting Just An Mou Or A Real Deal Case Study Help as well, but the growth might be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed certain dangers to Just An Mou Or A Real Deal Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Just An Mou Or A Real Deal Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals 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 certain methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the risk of losing the consumer base.
The company has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be computed. Nevertheless, the total financial efficiency of the business could be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Just An Mou Or A Real Deal Case Study Solution is growing and the company is rather efficient in attracting a a great deal of customers at a prospective price.
Along with it, the second graph which reveals the annual growth in the Just An Mou Or A Real Deal Case Study Analysis overall properties, shows that the business is quite efficient in adding value to its assets through its revenues. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis relating to the distribution of overall profits of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a potential development to accomplish its future advancement objective.
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the general political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Just An Mou Or A Real Deal Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the economic policies related to the import of books affect the general organisation at CPM. China's economic conditions are rather 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 traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces affecting Just An Mou Or A Real Deal Case Study Analysis includes the concerns of environmental communities 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 utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the risk of replacement for the market.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Just An Mou Or A Real Deal Case Study Help include the suppliers of the paper for publishing files. 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 market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Just An Mou Or A Real Deal Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the business require an immediate option to avoid the declining market growth. The business might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business ought to first collects the data related to the consumer demand, the prospective markets, the government regulations and the data associated with the rivals presented in the market. After that, the company must decide one prospective segment for its preliminary offering. It ought to gather research that how it might differentiate its digital publishing from the existing rivals' products. The actions above the business need to go for the initial offering. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining since 2008, showing a risk to the company's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.