Miracle Life Inc Case Study Solution and Analysis
Intro
Miracle Life Inc Case Study Help is the largest publishing company with a greatest 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 Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and Miracle Life Inc Case Study Help in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Miracle Life Inc Case Study Help has specific strengths that can be used to reduce the dangers, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Miracle Life Inc Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position allows the company to consider a number of advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase restraints for the business in implementing its advancement program. The weaknesses of Miracle Life Inc Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining given that 2008, impacting Miracle Life Inc Case Study Help as well, but the growth might be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has presented certain threats to Miracle Life Inc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Miracle Life Inc Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly overall profits of Miracle Life Inc Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a large number of customers at a prospective price.
Along with it, the second chart which reveals the annual growth in the Miracle Life Inc Case Study Analysis overall assets, shows that the company is rather efficient in adding worth to its properties through its revenues. The development in possessions reveals that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis concerning the circulation of overall revenues of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting Miracle Life Inc Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Miracle Life Inc Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies connected to the import of books impact the overall company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Miracle Life Inc Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Miracle Life Inc Case Study Analysis consist of the suppliers of the paper for publishing files. 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 buyer in the publishing market 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 documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Miracle Life Inc Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the decreasing industry growth. For that reason, intro of digital publishing could prove to be an instant service with low amount of danger for the company. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to initially gathers the information related to the consumer need, the prospective markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a danger to the company's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
