Micro Electronic Product Division Mepd Case Study Solution and Analysis
Intro
Micro Electronic Product Division Mepd Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing information and interaction services. Significant organisation sectors of the company include; books, regulars, consultancy and distribution. The company has a large item portfolio and its significant products include books, regulars, online media, exhibitions, research study reports etc. Micro Electronic Product Division Mepd Case Study Help has become a specialized info supplier and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Micro Electronic Product Division Mepd Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 scenario? 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Micro Electronic Product Division Mepd Case Study Solution has particular strengths that can be used to lower the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Micro Electronic Product Division Mepd Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position permits the company to think about a number of advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Micro Electronic Product Division Mepd Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways 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 strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Micro Electronic Product Division Mepd Case Study Help too, but the growth might be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned certain hazards to Micro Electronic Product Division Mepd Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Micro Electronic Product Division Mepd Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total revenues of Micro Electronic Product Division Mepd Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in drawing in a large number of clients at a potential rate.
In addition to it, the second chart which shows the yearly growth in the Micro Electronic Product Division Mepd Case Study Solution overall properties, shows that the company is rather efficient in adding worth to its properties through its earnings. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data might be the analysis regarding the circulation of total earnings of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine 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 needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Micro Electronic Product Division Mepd Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the files presented in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence 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, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Micro Electronic Product Division Mepd Case Study Solution include the suppliers of the paper for publishing files. 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 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 purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely 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 rivals of Micro Electronic Product Division Mepd Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks second and third in different market segments, with a major focus on instructional publications. CIP serves as a threat 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 market share of Micro Electronic Product Division Mepd Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the same period as Micro Electronic Product Division Mepd Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value 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 brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an immediate option to avoid the decreasing industry development. The company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially gathers the information associated with the customer need, the prospective markets, the government guidelines and the data associated with the rivals provided in the market. After that, the company needs to decide one prospective sector for its initial offering. It needs to collect research study that how it could separate its digital publishing from the existing rivals' items. The steps above the company should go for the preliminary offering. The company must go for the other markets if the initial offering shows a success. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, revealing a hazard to the company's long term presence, but the circumstance can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
