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Kameda Seika Case Analysis

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Kameda Seika Case Study Solution and Analysis


Introduction

Kameda Seika Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting info, processing details and interaction services. Significant organisation sectors of the business include; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports and so on. Kameda Seika Case Study Help has become a specialized information company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Critical Problems

CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in basic and Kameda Seika Case Study Help in particular. These factors include;

• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
Executive Summary
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 company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Kameda Seika Case Study Solution has certain strengths that can be utilized to minimize the dangers, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;

• The long term experience of Kameda Seika Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong monetary position permits the company to consider numerous advancement chances with no worry of raising fund externally.

Weak points

In addition to the strengths, the company has certain weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Kameda Seika Case Study Solution are given as follows;

• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing market is decreasing since 2008, affecting Kameda Seika Case Study Analysis as well, however the development might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;

• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.

Threats

The altering macro patterns in the market and increasing competition in the publishing market has presented specific hazards to Kameda Seika Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Kameda Seika Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger 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 products, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly total revenues of Kameda Seika Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is quite effective in attracting a big number of clients at a potential cost.

Along with it, the 2nd graph which reveals the annual development in the Kameda Seika Case Study Analysis overall properties, shows that the business is quite effective in including worth to its properties through its profits. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).

Another monetary analysis of the company utilizing the offered data might be the analysis concerning the distribution of overall revenues of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential development to achieve its future development goal.

PESTEL Analysis

PESTEL analysis could be performed to learn the various external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.

Affordable.

Economic forces affecting the publishing sector in general and the Kameda Seika Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall company at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's preferences towards reading useful materials and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the Kameda Seika Case Study Analysis. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer choices.

Technological.

Technological forces impacting the CMP include the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces impacting Kameda Seika Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.

Industry Analysis (Porter's Five Forces Design).

Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.

Danger of New Entrants.

Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.

Hazard of Replacement.

Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital learning increase the threat of replacement for the industry.

Competitive Rivalry.

Competitive rivalry in the publishing market 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. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant providers of the Kameda Seika Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.

Competitors Analysis.

CMP runs in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Kameda Seika Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis among the close competitors of CMP. Established in the exact same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in different market sectors, with a significant concentrate on instructional publications. CIP functions 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 marketplace share of Kameda Seika Case Study Solution easily in the present market situation.

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 terms of business scale. It is also one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its products in the market.

Recommendations

As the choices are moving towards digital publishing and the company require an instant service to avoid the declining market growth. The company could likewise think about the expansion program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data associated with the consumer need, the possible markets, the government regulations and the information associated with the competitors provided in the market. After that, the business needs to decide one possible segment for its initial offering. It must collect research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the business need to opt for the preliminary offering. The business must go for the other markets if the initial offering proves a success. In this way the company would be able to execute its digital publishing program.

Conclusion

Although, the growth of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.

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