Magic Timber And Steel Case Study Solution and Analysis
Introduction
Magic Timber And Steel Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing info and communication services. Major organisation sections of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Magic Timber And Steel Case Study Solution has ended up being a specialized details company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and Magic Timber And Steel Case Study Analysis in specific. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Magic Timber And Steel Case Study Analysis has certain strengths that can be used to lower the dangers, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Magic Timber And Steel Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position allows the company to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase constraints for the business in executing its advancement program. The weak points of Magic Timber And Steel Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Magic Timber And Steel Case Study Help also, but the growth might be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition 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 using its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually presented particular dangers to Magic Timber And Steel Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Magic Timber And Steel Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the hazard of losing the client base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be computed. The total financial performance of the business might be analyzed by using the graphs offered in the case Appendices. It might be examined from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Magic Timber And Steel Case Study Solution is growing and the business is rather efficient in attracting a a great deal of consumers at a possible price.
Along with it, the 2nd graph which shows the yearly growth in the Magic Timber And Steel Case Study Solution total assets, shows that the business is quite efficient in including value to its assets through its incomes. The growth in assets shows that the overall worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis concerning the distribution of total earnings of the company. 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 might move towards other service sectors with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the overall political forces impacting Magic Timber And Steel Case Study Help company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Magic Timber And Steel Case Study Help includes the concerns of environmental neighborhoods 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially 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 Model).
Porter's Five Forces Design might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Magic Timber And Steel Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Magic Timber And Steel Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a major concentrate on educational publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Magic Timber And Steel Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage 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 capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry development. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should first gathers the data related to the consumer need, the prospective markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves 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
Although, the development of the publishing industry is decreasing considering that 2008, revealing a danger to the business's long term presence, but the scenario can be controlled by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
