Milestone Three Case Study Solution and Analysis
Intro
Milestone Three Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing info and communication services. Significant service segments of the company include; books, regulars, consultancy and distribution. The company has a large product portfolio and its major items consist of books, regulars, online media, exhibits, research reports etc. Milestone Three Case Study Analysis has become a specialized info supplier and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and Milestone Three Case Study Solution in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be used 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
Milestone Three Case Study Solution has specific strengths that can be used to reduce the risks, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Milestone Three Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position permits the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restrictions for the business in implementing its advancement program. The weak points of Milestone Three Case Study Analysis 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 must propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, affecting Milestone Three Case Study Analysis as well, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities 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 could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured certain risks to Milestone Three Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Milestone Three Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be computed. However, the overall financial performance of the business could be analyzed by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Milestone Three Case Study Help is growing and the business is quite effective in drawing in a a great deal of consumers at a prospective cost.
Along with it, the 2nd chart which shows the annual development in the Milestone Three Case Study Analysis total assets, reveals that the business is rather effective in including value to its assets through its earnings. The growth in properties shows that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis concerning the circulation of overall earnings of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the total political forces impacting Milestone Three Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings 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.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful materials and so on. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Milestone Three Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Milestone Three Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze 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 Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the files provided in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence 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 entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Milestone Three Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Milestone Three Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a major focus on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Milestone Three Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential 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 existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing industry development. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially gathers the information related to the customer need, the prospective markets, the government guidelines and the data connected to the competitors provided in the market. After that, the company needs to decide one possible sector for its initial offering. It must gather research study that how it might separate its digital publishing from the existing competitors' items. After all the actions above the company ought to choose the preliminary offering. If the preliminary offering shows a success, the company ought to choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a threat to the company's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
