Midterm Examination Case Study Solution and Analysis
Midterm Examination Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Midterm Examination Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Midterm Examination Case Study Help has certain strengths that can be made use of to lower the hazards, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Midterm Examination Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position allows the business to consider a number of development opportunities without any worry of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Midterm Examination Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing market is declining considering that 2008, impacting Midterm Examination Case Study Solution too, but the growth might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific threats to Midterm Examination Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Midterm Examination Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competitors increases the threat of losing the client base.
The company has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the business could be analyzed by using the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Midterm Examination Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of customers at a prospective rate.
Together with it, the second chart which reveals the yearly growth in the Midterm Examination Case Study Solution total assets, shows that the business is quite effective in adding value to its properties through its earnings. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis concerning the distribution of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential development to achieve its future development objective.
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful materials etc. China has the greatest population on the planet with a high population development, showing the increasing number of consumers of the Midterm Examination Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if certain actions would not be taken quickly.
Ecological forces impacting Midterm Examination Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Midterm Examination Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Midterm Examination Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Midterm Examination Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the declining industry growth. Therefore, introduction of digital publishing might prove to be an instant service with low amount of threat for the company. The business might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the data connected to the consumer need, the possible markets, the federal government regulations and the information related to the rivals presented in the market. After that, the company needs to decide one prospective sector for its initial offering. It should collect research that how it could distinguish its digital publishing from the existing rivals' items. The actions above the business need to go for the initial offering. If the initial offering proves a success, the company ought to choose the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, revealing a danger to the company's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.