Laura Martin Real Options And The Cable Industry 3 Case Study Solution and Analysis
Introduction
Laura Martin Real Options And The Cable Industry 3 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing info and interaction services. Major organisation segments of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Laura Martin Real Options And The Cable Industry 3 Case Study Solution has actually become a specialized information supplier and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Laura Martin Real Options And The Cable Industry 3 Case Study Solution in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities 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
Laura Martin Real Options And The Cable Industry 3 Case Study Help has certain strengths that can be utilized to decrease the hazards, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Laura Martin Real Options And The Cable Industry 3 Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong monetary position enables the company to consider several advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase constraints for the business in implementing its advancement program. The weak points of Laura Martin Real Options And The Cable Industry 3 Case Study Solution 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 ought to propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing because 2008, impacting Laura Martin Real Options And The Cable Industry 3 Case Study Help as well, but the growth could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has posed certain threats to Laura Martin Real Options And The Cable Industry 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Laura Martin Real Options And The Cable Industry 3 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market along with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be determined. The overall monetary efficiency of the business could be examined by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Laura Martin Real Options And The Cable Industry 3 Case Study Analysis is growing and the company is quite efficient in bring in a large number of consumers at a possible price.
Together with it, the 2nd graph which shows the annual development in the Laura Martin Real Options And The Cable Industry 3 Case Study Solution total properties, shows that the company is quite effective in including worth to its possessions through its profits. The development in assets shows that the overall value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the distribution of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Laura Martin Real Options And The Cable Industry 3 Case Study Analysis 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 hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Laura Martin Real Options And The Cable Industry 3 Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Laura Martin Real Options And The Cable Industry 3 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a major concentrate on instructional 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 Laura Martin Real Options And The Cable Industry 3 Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing market development. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the information connected to the customer need, the prospective markets, the federal government policies and the data associated with the competitors provided in the market. After that, the company needs to decide one potential sector for its initial offering. It needs to gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the business should go for the initial offering. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term existence, but the situation can be managed by considering 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 entryway in the new markets.
