Laura Martin Real Options And The Cable Industry 4 Case Study Solution and Analysis
Laura Martin Real Options And The Cable Industry 4 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in basic and Laura Martin Real Options And The Cable Industry 4 Case Study Analysis in particular. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Laura Martin Real Options And The Cable Industry 4 Case Study Analysis has certain strengths that can be utilized to decrease the threats, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Laura Martin Real Options And The Cable Industry 4 Case Study Solution in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position permits the company to consider numerous development opportunities without any worry of raising fund externally.
In addition to the strengths, the business has particular weak points which could increase restrictions for the business in executing its advancement program. The weak points of Laura Martin Real Options And The Cable Industry 4 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
The development of the publishing market is decreasing since 2008, impacting Laura Martin Real Options And The Cable Industry 4 Case Study Analysis as well, but the development might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain threats to Laura Martin Real Options And The Cable Industry 4 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Laura Martin Real Options And The Cable Industry 4 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence 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 gain a strong consumer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the threat of losing the client base.
The company has a rather competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be computed. The total monetary efficiency of the business might be analyzed by utilizing the graphs offered in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Laura Martin Real Options And The Cable Industry 4 Case Study Analysis is growing and the company is quite efficient in attracting a large number of customers at a potential rate.
Together with it, the second graph which shows the yearly growth in the Laura Martin Real Options And The Cable Industry 4 Case Study Analysis overall properties, shows that the company is rather efficient in including value to its possessions through its revenues. The development in properties shows that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis relating to the circulation of total earnings of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential growth to achieve its future advancement objective.
PESTEL analysis might be conducted to discover the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
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 highly supervised and directed by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Laura Martin Real Options And The Cable Industry 4 Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Laura Martin Real Options And The Cable Industry 4 Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Laura Martin Real Options And The Cable Industry 4 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its products in the market.
As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the declining industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should first gathers the data related to the consumer demand, the potential markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the business's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.