Midnight Journal Entry Case Study Solution and Analysis
Intro
Midnight Journal Entry Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Midnight Journal Entry Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions 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 abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Midnight Journal Entry Case Study Solution has specific strengths that can be made use of to decrease the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Midnight Journal Entry Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position allows the company to consider a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Midnight Journal Entry Case Study Help are provided 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 certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Midnight Journal Entry Case Study Analysis too, but the development might be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has postured specific hazards to Midnight Journal Entry Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Midnight Journal Entry Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall incomes of Midnight Journal Entry Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a prospective rate.
Along with it, the 2nd graph which reveals the yearly growth in the Midnight Journal Entry Case Study Analysis total possessions, shows that the company is quite effective in including worth to its possessions through its earnings. The growth in possessions shows that the overall value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the circulation of total profits of the company. Major 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 business sections with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Midnight Journal Entry Case Study Help in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general service at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Midnight Journal Entry Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the digital libraries on certain sites. The changing customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Midnight Journal Entry Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Midnight Journal Entry Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in various market segments, with a significant focus on instructional publications. CIP functions as a danger 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 marketplace share of Midnight Journal Entry Case Study Help quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Midnight Journal Entry Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its products 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 rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an immediate service to prevent the declining industry growth. Introduction of digital publishing might show to be an immediate solution with low amount of danger for the company. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the information connected to the customer demand, the potential markets, the government policies and the data associated with the rivals provided in the market. After that, the company should choose one potential segment for its initial offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' items. The steps above the company should go for the preliminary offering. If the preliminary offering proves a success, the company should choose the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
