Man Group A Case Study Solution and Analysis
Introduction
Man Group A Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Man Group A Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Man Group A Case Study Solution has certain strengths that can be used to lower the dangers, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Man Group A Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position permits the company to think about a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of Man Group A Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard 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 particular growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Man Group A Case Study Analysis also, however the development might be restored by availing specific opportunities provided in the market. The marketplace opportunities 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 could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has positioned specific threats to Man Group A Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Man Group A Case Study Help due to the customer shift towards digital 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 rivals can gain a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market along with existence of high competitors increases the threat of losing the client base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could 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 yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Man Group A Case Study Analysis is growing and the business is quite efficient in attracting a a great deal of customers at a prospective cost.
Together with it, the second graph which reveals the yearly development in the Man Group A Case Study Solution overall assets, shows that the company is quite effective in adding value to its assets through its revenues. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis concerning the distribution of total profits of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Man Group A Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the financial policies connected to the import of books affect the general service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Man Group A Case Study Solution. However, the customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Man Group A Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Man Group A Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Man Group A Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant focus on educational publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Man Group A Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk 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 company segments to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant option to avoid the decreasing market development. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the data related to the customer need, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a hazard to the business's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
