Nathan Baker Case Study Solution and Analysis
Nathan Baker Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and Nathan Baker Case Study Solution in particular. These factors consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Nathan Baker Case Study Help has certain strengths that can be used to decrease the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Nathan Baker Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position permits the company to consider several development chances with no fear of raising fund externally.
In addition to the strengths, the business has certain weaknesses which could increase restraints for the company in executing its advancement program. The weaknesses of Nathan Baker Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, 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 must propose specific growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining since 2008, affecting Nathan Baker Case Study Solution too, however the growth might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competition in the publishing market has posed particular risks to Nathan Baker Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Nathan Baker Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competition increases the risk of losing the client base.
The company has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be determined. The overall financial efficiency of the business might be evaluated by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Nathan Baker Case Study Help is growing and the business is quite efficient in drawing in a large number of customers at a prospective cost.
Together with it, the second chart which shows the yearly growth in the Nathan Baker Case Study Solution total assets, reveals that the business is quite efficient in including worth to its possessions through its earnings. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the circulation of overall profits of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a possible growth to accomplish its future advancement goal.
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting Nathan Baker Case Study Solution 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 CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Nathan Baker Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Nathan Baker 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 general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Nathan Baker Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Nathan Baker Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Nathan Baker Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.
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 advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining market development. Therefore, intro of digital publishing might prove to be an immediate option with low amount of danger for the business. The business might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information related to the consumer need, the possible markets, the government policies and the information associated with the rivals provided in the market. After that, the company must choose one potential section for its initial offering. It must gather research study that how it might separate its digital publishing from the existing competitors' items. The steps above the company ought to go for the preliminary offering. The business must go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to implement its digital publishing program.
The development of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.