Mixi B Case Study Solution and Analysis
Introduction
Mixi B Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing info and communication services. Significant service segments of the business include; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products include books, regulars, online media, exhibitions, research reports and so on. Mixi B Case Study Solution has become a specialized info supplier and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Mixi B Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Mixi B Case Study Help has specific strengths that can be made use of to minimize the risks, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Mixi B Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position allows the business to think about a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Mixi B Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly 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
Although, the development of the publishing industry is declining since 2008, impacting Mixi B Case Study Help too, however the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has posed certain risks to Mixi B Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Mixi B Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market along with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be computed. However, the overall monetary performance of the business could be evaluated by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Mixi B Case Study Solution is growing and the company is quite efficient in attracting a large number of consumers at a potential cost.
Along with it, the 2nd chart which shows the annual growth in the Mixi B Case Study Analysis total possessions, reveals that the company is rather efficient in adding value to its assets through its profits. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis regarding the distribution of total revenues of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, 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.
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 fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation together with the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Mixi B Case Study Solution includes the concerns of environmental neighborhoods over the use 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 harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Mixi B Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence 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. Major competitors of Mixi B Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 might wean the market share of CMP easily in the current market scenario.
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 sixth in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining industry development. For that reason, intro of digital publishing could prove to be an instant solution with low amount of threat for the company. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the information associated with the customer demand, the possible markets, the government policies and the information associated with the competitors presented in the market. After that, the business needs to choose one potential sector for its preliminary offering. It needs to collect research study that how it could differentiate its digital publishing from the existing competitors' products. The actions above the company ought to go for the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a danger to the company's long term existence, but the scenario can be managed 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 prevent the threat of failure for entryway in the new markets.
