Keeping The Faith Case Study Solution and Analysis
Intro
Keeping The Faith Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and Keeping The Faith Case Study Solution in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Keeping The Faith Case Study Help has certain strengths that can be made use of to minimize the threats, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Keeping The Faith Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the company to think about a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of Keeping The Faith 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 should propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Keeping The Faith Case Study Help too, however the development could be revived by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer 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 utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has postured specific dangers to Keeping The Faith Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Keeping The Faith Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market together with presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be determined. However, the general monetary performance of the company might be examined by using the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Keeping The Faith Case Study Help is growing and the business is rather efficient in bring in a a great deal of consumers at a possible rate.
In addition to it, the second chart which reveals the annual growth in the Keeping The Faith Case Study Solution total assets, shows that the company is rather effective in including value to its assets through its profits. The development in assets shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis relating to the circulation of total revenues of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the total political forces impacting Keeping The Faith Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Keeping The Faith Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market. Together with it, the economic policies related to the import of books impact the overall organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Keeping The Faith Case Study Help includes the issues of ecological neighborhoods over the usage 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.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the digital libraries on particular sites. The altering consumer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive rivalry 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 competition for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Keeping The Faith Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Keeping The Faith Case Study Solution include;.
• 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining industry growth. The company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should initially gathers the information related to the consumer demand, the prospective markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a hazard to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
