Midnight Journal Entry Case Study Solution and Analysis
Midnight Journal Entry Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing details and communication services. Major service sectors of the company consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. Midnight Journal Entry Case Study Solution has actually become a specialized information service provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Midnight Journal Entry Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Midnight Journal Entry Case Study Help has particular strengths that can be utilized to decrease the hazards, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Midnight Journal Entry Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position allows the business to consider a number of advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which could increase constraints for the company in implementing its advancement program. The weaknesses of Midnight Journal Entry Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing industry is declining since 2008, affecting Midnight Journal Entry Case Study Analysis also, but the development might be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually posed specific threats to Midnight Journal Entry Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Midnight Journal Entry Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the danger of losing the client base.
Due to absence of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall incomes of Midnight Journal Entry Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in bring in a big number of customers at a prospective cost.
Together with it, the second graph which reveals the annual growth in the Midnight Journal Entry Case Study Analysis total assets, shows that the business is rather efficient in including worth to its assets through its earnings. The growth in assets reveals that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the circulation of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sectors with a possible development to attain its future advancement goal.
PESTEL analysis could be performed to find out the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the total political forces impacting Midnight Journal Entry Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Midnight Journal Entry Case Study Analysis. However, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Midnight Journal Entry Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs 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 Model might be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the documents presented in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Midnight Journal Entry Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall 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 presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Midnight Journal Entry Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in numerous market segments, with a significant concentrate on instructional publications. CIP functions as a risk 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 Midnight Journal Entry Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an instant solution to prevent the declining market growth. Introduction of digital publishing could show to be an instant service with low amount of danger for the company. Nevertheless, the company might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data connected to the customer need, the potential markets, the government guidelines and the data associated with the rivals presented in the market. After that, the company ought to choose one possible section for its initial offering. It needs to collect research study that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business must go for the preliminary offering. The company should go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
The development of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term presence, however the scenario can be controlled by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.