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Midterm Examination Case Study Solution and Analysis


Intro

Midterm Examination Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.

Critical Issues

Although, Midterm Examination Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These factors include;

• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
Executive Summary
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 circumstance? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Midterm Examination Case Study Solution has specific strengths that can be made use of to reduce the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;

• The long term experience of Midterm Examination Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position allows the business to consider numerous development opportunities with no worry of raising fund externally.

Weak points

Along with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Midterm Examination Case Study Help are offered as follows;

• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing market is declining considering that 2008, affecting Midterm Examination Case Study Solution as well, but the development might be revived by availing specific chances provided in the market. The marketplace chances for CMP consist of;

• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.

Hazards

The changing macro patterns in the market and increasing competitors in the publishing market has presented certain hazards to Midterm Examination Case Study Solution consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Midterm Examination Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the danger of losing the customer base.

Financial Analysis.
Swot Analysis
Due to absence of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual total profits of Midterm Examination Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in drawing in a big number of clients at a possible rate.

Together with it, the second chart which shows the annual growth in the Midterm Examination Case Study Help overall properties, shows that the business is quite efficient in including value to its assets through its profits. The growth in properties shows that the total value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).

Another financial analysis of the company utilizing the provided information might be the analysis concerning the circulation of total incomes of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a potential growth to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis might be performed to learn the various external forces affecting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.

Affordable.

Financial forces impacting the publishing sector in basic and the Midterm Examination Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the general company at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.

Social and Demographical.

The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer preferences.

Technological.

Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting Midterm Examination Case Study Analysis includes the concerns of environmental 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 ought to not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.

Industry Analysis (Porter's Five Forces Design).

Porter's Five Forces Design could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.

Risk of New Entrants.

Hazards 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. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.

Danger of Substitution.

Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the files presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the hazard of replacement for the market.

Competitive Competition.

Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.

Bargaining Power of Provider.

The significant providers of the Midterm Examination Case Study Solution consist of the providers of the paper for releasing documents. 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 Buyer.

Negotiating 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 buyers requires high quality files at competitive rates.

Rivals Analysis.

CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Midterm Examination Case Study Solution consist of;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis among the close rivals of CMP. Established in the very same period, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks third and second in different market segments, with a major focus on instructional publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Midterm Examination Case Study Help quickly in the existing market circumstance.

Posts and telecommunication Press (PTP).

It was likewise established in the same period as Midterm Examination Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its products in the market.

Suggestions

As the preferences are moving towards digital publishing and the business require an instant solution to avoid the decreasing industry development. The business could also think about the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its item portfolio, the company needs to first collects the information related to the customer need, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering shows a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing industry is declining because 2008, revealing a danger to the business's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.

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