Kingdee Case Study Solution and Analysis
Kingdee Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing information and communication services. Major company sections of the company consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its major products include books, periodicals, online media, exhibits, research study reports and so on. Kingdee Case Study Analysis has become a specialized details provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Kingdee Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of questions 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 utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Kingdee Case Study Analysis has specific strengths that can be utilized to reduce the risks, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Kingdee Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong monetary position permits the business to think about several advancement opportunities without any worry of raising fund externally.
In addition to the strengths, the company has particular weaknesses which could increase restraints for the business in executing its advancement program. The weaknesses of Kingdee Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining considering that 2008, affecting Kingdee Case Study Analysis as well, but the development could be restored by availing specific chances presented in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has posed specific risks to Kingdee Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Kingdee Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the client base.
The business has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP might not be computed. Nevertheless, the total financial performance of the business could be analyzed by using the graphs given up the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Kingdee Case Study Help is growing and the company is rather effective in attracting a a great deal of consumers at a potential cost.
Together with it, the second chart which shows the annual development in the Kingdee Case Study Analysis total possessions, shows that the business is quite effective in adding value to its properties through its incomes. The development in properties reveals that the overall value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis concerning the distribution of total revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a potential growth to accomplish its future development objective.
PESTEL analysis could be conducted to discover the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting 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 development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful materials and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Kingdee Case Study Analysis. Nevertheless, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Kingdee Case Study Analysis consists of the concerns of ecological neighborhoods 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 should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Kingdee Case Study Help consist of the suppliers of the paper for publishing 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.
Negotiating power of purchaser 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 requires high quality files at competitive costs.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Kingdee Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sections, with a significant focus on academic publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Kingdee Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an instant option to avoid the declining industry development. For that reason, intro of digital publishing could show to be an instant solution with low quantity of danger for the business. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially collects the data related to the customer demand, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing market is decreasing given that 2008, revealing a risk to the business's long term existence, however the scenario can be controlled by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.