Kameda Seika Case Study Solution and Analysis
Intro
Kameda Seika Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing info and communication services. Major business sectors of the company consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. Kameda Seika Case Study Analysis has become a specialized info company and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Kameda Seika Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities 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
Kameda Seika Case Study Solution has particular strengths that can be utilized to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Kameda Seika Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position enables the business to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase constraints for the company in executing its development program. The weak points of Kameda Seika Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining because 2008, impacting Kameda Seika Case Study Solution as well, but the development could be restored by availing particular chances presented in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain dangers to Kameda Seika Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Kameda Seika Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly overall profits of Kameda Seika Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in drawing in a large number of consumers at a possible cost.
Along with it, the 2nd chart which reveals the yearly growth in the Kameda Seika Case Study Help overall properties, shows that the company is quite efficient in adding value to its assets through its earnings. The development in assets reveals that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of total profits of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces impacting Kameda Seika Case Study Help organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out helpful materials and so on. China has the highest population on the planet with a high population growth, showing the increasing number of consumers of the Kameda Seika Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Kameda Seika Case Study Analysis includes the concerns of ecological communities 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 policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the digital libraries on specific sites. The changing customer choices towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. 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 suppliers of the Kameda Seika Case Study Help include 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Kameda Seika Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in different market sectors, with a major concentrate on academic publications. CIP acts as a risk 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 Kameda Seika Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should first gathers the information connected to the consumer need, the potential markets, the government guidelines and the information associated with the rivals provided in the market. After that, the business should choose one prospective section for its initial offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' items. The actions above the business should go for the initial offering. If the initial offering shows a success, the business needs to opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a risk to the business's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
