Man Group B Case Study Solution and Analysis
Introduction
Man Group B Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Man Group B Case Study Analysis in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 abilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Man Group B Case Study Help has particular strengths that can be used to lower the dangers, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Man Group B Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position permits the business to think about several development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Man Group B Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, affecting Man Group B Case Study Analysis as well, but the development might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually postured particular risks to Man Group B Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Man Group B Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall incomes of Man Group B Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a large number of customers at a prospective rate.
Along with it, the 2nd graph which shows the annual development in the Man Group B Case Study Solution total possessions, shows that the business is rather effective in adding value to its possessions through its earnings. The development in properties reveals that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to the circulation of overall incomes of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces impacting Man Group B Case Study Analysis service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Man Group B Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Man Group B Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Man Group B Case Study Solution include the suppliers of the paper for releasing 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.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Man Group B Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market scenario.
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 also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing market growth. Intro of digital publishing might prove to be an instant service with low quantity of danger for the company. Nevertheless, the business might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should first gathers the data associated with the consumer demand, the prospective markets, the federal government policies and the information connected to the rivals provided in the market. After that, the company needs to choose one prospective segment for its initial offering. It needs to gather research study that how it might separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the preliminary offering. If the initial offering proves a success, the company needs to choose the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
