Micom Caribe A Case Study Solution and Analysis
Micom Caribe A Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing information and communication services. Significant organisation sectors of the company include; books, regulars, consultancy and circulation. The business has a huge item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. Micom Caribe A Case Study Analysis has ended up being a specialized information company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and Micom Caribe A Case Study Analysis in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions 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 company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Micom Caribe A Case Study Solution has certain strengths that can be utilized to minimize the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Micom Caribe A Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position allows the business to consider a number of development chances without any fear of raising fund externally.
Along with the strengths, the business has certain weak points which might increase constraints for the business in implementing its development program. The weak points of Micom Caribe A Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Micom Caribe A Case Study Analysis also, but the development could be restored by availing particular chances provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has postured particular threats to Micom Caribe A Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Micom Caribe A Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat 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 products, and so on
• Entrance of new publishing firms in the market in addition to existence of high competitors increases the threat of losing the client base.
Due to lack of data, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly overall earnings of Micom Caribe A Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a large number of customers at a possible price.
In addition to it, the 2nd graph which shows the yearly development in the Micom Caribe A Case Study Analysis total possessions, shows that the business is rather effective in including worth to its possessions through its incomes. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the distribution of total incomes of the company. Major part of the incomes 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 business sections with a possible development to attain its future development objective.
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect 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 Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Micom Caribe A Case Study Analysis business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Micom Caribe A Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Micom Caribe A Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Micom Caribe A Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in various market sectors, with a significant focus on educational publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Micom Caribe A Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Micom Caribe A Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the company require an instant solution to prevent the decreasing industry growth. Intro of digital publishing might show to be an immediate service with low amount of danger for the company. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should first collects the information related to the consumer need, the potential 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 way the business would be able to implement its digital publishing program.
The development of the publishing market is declining since 2008, showing a threat to the business's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.