Marlin Associates And The Sale Of Riverview Technologies Case Study Solution and Analysis
Intro
Marlin Associates And The Sale Of Riverview Technologies Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing info and communication services. Major organisation sections of the company consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major items include books, periodicals, online media, exhibits, research study reports etc. Marlin Associates And The Sale Of Riverview Technologies Case Study Help has become a specialized details company and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Marlin Associates And The Sale Of Riverview Technologies Case Study Help in particular. These factors include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several 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 business could be utilized 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
Marlin Associates And The Sale Of Riverview Technologies Case Study Solution has certain strengths that can be utilized to lower the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Marlin Associates And The Sale Of Riverview Technologies Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong monetary position permits the business to consider numerous advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase constraints for the company in executing its advancement program. The weak points of Marlin Associates And The Sale Of Riverview Technologies Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, 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 growth. It should propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting Marlin Associates And The Sale Of Riverview Technologies Case Study Help as well, but the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular threats to Marlin Associates And The Sale Of Riverview Technologies Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Marlin Associates And The Sale Of Riverview Technologies Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. However, the total financial performance of the company might be analyzed by using the graphs given up the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Marlin Associates And The Sale Of Riverview Technologies Case Study Solution is growing and the business is rather effective in drawing in a large number of clients at a potential rate.
Together with it, the 2nd chart which shows the yearly growth in the Marlin Associates And The Sale Of Riverview Technologies Case Study Help overall possessions, shows that the company is rather effective in adding worth to its assets through its earnings. The development in properties reveals that the total value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis concerning the circulation of total incomes 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 business might move towards other company segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Marlin Associates And The Sale Of Riverview Technologies Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. Together with it, the economic policies related to the import of books affect the overall organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Marlin Associates And The Sale Of Riverview Technologies Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Marlin Associates And The Sale Of Riverview Technologies Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market 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 prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Marlin Associates And The Sale Of Riverview Technologies Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Marlin Associates And The Sale Of Riverview Technologies Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the decreasing industry growth. Therefore, introduction of digital publishing might show to be an immediate solution with low amount of threat for the company. Nevertheless, the company could likewise 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 must initially gathers the data related to the customer need, the possible markets, the government guidelines and the information connected to the rivals presented in the market. After that, the company ought to decide one prospective sector for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing competitors' items. The steps above the company must go for the initial offering. If the initial offering shows a success, the business needs to choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a risk to the company's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
