Literature Review Case Study Solution and Analysis
Introduction
Literature Review Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing information and communication services. Major service sectors of the company consist of; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. Literature Review Case Study Help has actually ended up being a specialized info company and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in general and Literature Review Case Study Solution in specific. These elements include;
• Entryway 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 improvement of the macro markets have raised several concerns 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 business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Literature Review Case Study Solution has specific strengths that can be made use of to minimize the hazards, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Literature Review Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the business to consider several development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of Literature Review Case Study Analysis are offered as follows;
• Despite of being a science and innovation 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 particular expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Literature Review Case Study Help as well, but the growth could be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed certain hazards to Literature Review Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Literature Review Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall earnings of Literature Review Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in drawing in a large number of customers at a potential cost.
Together with it, the second chart which shows the annual development in the Literature Review Case Study Help total assets, reveals that the company is quite effective in adding value to its assets through its revenues. The growth in possessions reveals that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis relating to the distribution of overall incomes of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the efficiency of the business and the recent patterns 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 could have a significant impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces affecting Literature Review Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out helpful products and so on. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the Literature Review Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Literature Review Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition 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. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Literature Review Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Literature Review Case Study Analysis 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 very same period, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a significant concentrate on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Literature Review Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an immediate solution to avoid the declining market growth. Intro of digital publishing could prove to be an instant service with low quantity of risk for the business. The business could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company ought to first gathers the data related to the consumer need, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a hazard to the business's long term presence, but the scenario can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
