Magic Timber And Steel Case Study Solution and Analysis
Introduction
Magic Timber And Steel Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing details and communication services. Major company segments of the business include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports and so on. Magic Timber And Steel Case Study Solution has become a specialized details supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Magic Timber And Steel Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Magic Timber And Steel Case Study Solution has certain strengths that can be made use of to reduce the risks, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Magic Timber And Steel Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in executing its advancement program. The weak points of Magic Timber And Steel Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Magic Timber And Steel Case Study Analysis also, but the development could be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed certain threats to Magic Timber And Steel Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Magic Timber And Steel Case Study Help due to the customer shift towards digital 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 get a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual overall incomes of Magic Timber And Steel Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a big number of consumers at a potential cost.
Together with it, the second chart which reveals the yearly development in the Magic Timber And Steel Case Study Help overall assets, shows that the business is quite effective in adding worth to its assets through its profits. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis relating to the distribution of overall profits of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company 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 frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer choices 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 changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Magic Timber And Steel Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Magic Timber And Steel Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Magic Timber And Steel Case Study Help include;.
• Chemical Market 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 similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a major focus on instructional publications. CIP acts 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 Magic Timber And Steel Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
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 development. As the preferences are moving towards digital publishing and the company require an instant option to prevent the declining market development. Introduction of digital publishing could show to be an instant solution with low quantity of threat for the company. However, the company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the data related to the customer need, the possible markets, the federal government policies and the information connected to the rivals provided in the market. After that, the business must choose one potential section for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business should go for the preliminary offering. If the initial offering shows a success, the business needs to opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a risk to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
