Module Culminating Assignment Case Study Solution and Analysis
Module Culminating Assignment Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing information and interaction services. Significant company sections of the company consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Module Culminating Assignment Case Study Solution has actually ended up being a specialized information supplier and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and Module Culminating Assignment Case Study Help in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Module Culminating Assignment Case Study Solution has particular strengths that can be made use of to decrease the risks, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Module Culminating Assignment Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the business to think about several development opportunities with no fear of raising fund externally.
Along with the strengths, the business has certain weak points which might increase restrictions for the company in implementing its advancement program. The weaknesses of Module Culminating Assignment Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing industry is decreasing considering that 2008, affecting Module Culminating Assignment Case Study Analysis as well, but the development might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has posed certain dangers to Module Culminating Assignment Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Module Culminating Assignment Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the consumer base.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be determined. The general financial performance of the company could be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Module Culminating Assignment Case Study Analysis is growing and the company is rather efficient in attracting a large number of clients at a potential cost.
Along with it, the 2nd graph which reveals the annual growth in the Module Culminating Assignment Case Study Analysis total properties, reveals that the company is rather effective in including worth to its possessions through its profits. The development in possessions reveals that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information might be the analysis concerning the circulation of overall incomes of the business. Huge 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 could move towards other business sectors with a possible development to achieve its future advancement goal.
PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It might be said that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Module Culminating Assignment Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies associated with the import of books impact the general company at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Module Culminating Assignment Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry 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 also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Module Culminating Assignment Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Module Culminating Assignment Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market segments, with a significant focus on academic publications. CIP serves as a danger 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 market share of Module Culminating Assignment Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an instant option to avoid the declining market development. Introduction of digital publishing could show to be an instant option with low amount of danger for the business. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first collects the information related to the customer demand, the possible markets, the government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the company should go for 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 because 2008, showing a threat to the business's long term presence, 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 immediate basis and to avoid the danger of failure for entrance in the new markets.