Michael Patterson A Case Study Solution and Analysis
Intro
Michael Patterson A Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and Michael Patterson A Case Study Solution in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Michael Patterson A Case Study Help has specific strengths that can be made use of to reduce the threats, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Michael Patterson A Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position allows the business to consider several advancement opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase restraints for the company in implementing its development program. The weak points of Michael Patterson A Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Michael Patterson A Case Study Solution also, but the growth might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned specific risks to Michael Patterson A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Michael Patterson A Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be determined. However, the general financial performance of the company could be examined by using the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Michael Patterson A Case Study Analysis is growing and the business is rather effective in attracting a a great deal of customers at a prospective rate.
Along with it, the second chart which shows the annual development in the Michael Patterson A Case Study Help total properties, reveals that the business is quite efficient in including worth to its properties through its earnings. The development in properties shows that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis regarding the circulation of overall profits of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a possible development to achieve 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 trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Michael Patterson A 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 needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition 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 providers of the Michael Patterson A Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Michael Patterson A Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Michael Patterson A Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 sections to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal 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 choices are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market development. For that reason, intro of digital publishing could prove to be an instant option with low amount of threat for the business. The company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first gathers the data related to the consumer demand, the possible markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, revealing a risk to the business's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
