Kingdee Case Study Solution and Analysis
Intro
Kingdee Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Kingdee Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several questions 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 company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kingdee Case Study Solution has specific strengths that can be utilized to decrease the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Kingdee Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong financial position enables the company to consider numerous advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which could increase restraints for the business in implementing its advancement program. The weaknesses of Kingdee Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, affecting Kingdee Case Study Solution too, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has posed certain dangers to Kingdee Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Kingdee Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total profits of Kingdee Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite efficient in bring in a big number of clients at a possible price.
Along with it, the second chart which reveals the annual development in the Kingdee Case Study Analysis total assets, shows that the company is rather efficient in including worth to its possessions through its profits. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis regarding the distribution of total incomes of the company. Major part of the incomes 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 company sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect 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 Publicity Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Kingdee Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved 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 beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Kingdee Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Kingdee Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Kingdee Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the customer need, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. After that, the business must decide one possible section for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the company need to choose the preliminary offering. The business ought to go for the other markets if the preliminary offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, revealing a threat to the business's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
