Nine Dragons Paper 2009 Case Study Solution and Analysis
Introduction
Nine Dragons Paper 2009 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering information, processing information and interaction services. Significant company sections of the company consist of; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products include books, periodicals, online media, exhibits, research study reports etc. Nine Dragons Paper 2009 Case Study Analysis has actually ended up being a specialized information supplier and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Nine Dragons Paper 2009 Case Study Help has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change 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 valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Nine Dragons Paper 2009 Case Study Analysis has specific strengths that can be used to reduce the hazards, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Nine Dragons Paper 2009 Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position enables the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase constraints for the business in implementing its development program. The weak points of Nine Dragons Paper 2009 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, affecting Nine Dragons Paper 2009 Case Study Help also, but the development could be revived by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has positioned particular threats to Nine Dragons Paper 2009 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Nine Dragons Paper 2009 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly overall revenues of Nine Dragons Paper 2009 Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in drawing in a big number of consumers at a possible cost.
Along with it, the 2nd graph which reveals the annual development in the Nine Dragons Paper 2009 Case Study Help total possessions, shows that the company is quite effective in including worth to its assets through its earnings. The development in properties reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis concerning the distribution of total revenues of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Nine Dragons Paper 2009 Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the virtual libraries on particular sites. The altering customer preferences towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Nine Dragons Paper 2009 Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Nine Dragons Paper 2009 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sections, with a significant concentrate on instructional publications. CIP functions 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 could wean the marketplace share of Nine Dragons Paper 2009 Case Study Help easily in the existing market scenario.
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 terms of company scale. It is also among the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an instant service to avoid the declining industry growth. The business might 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 must first collects the information associated with the consumer demand, the potential markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the business should choose one prospective sector for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business ought to go for the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a threat to the company's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
