Nine Dragons Paper 2009 Case Study Solution and Analysis
Nine Dragons Paper 2009 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Nine Dragons Paper 2009 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Nine Dragons Paper 2009 Case Study Help has specific strengths that can be used to decrease the threats, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Nine Dragons Paper 2009 Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position allows the company to consider several development opportunities without any worry of raising fund externally.
Together with the strengths, the business has specific weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Nine Dragons Paper 2009 Case Study Help are given 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 extremely relies over the Chinese markets for its development. It should propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term development.
The growth of the publishing industry is declining because 2008, affecting Nine Dragons Paper 2009 Case Study Analysis as well, but the growth might be revived by availing particular chances provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competition in the publishing industry has positioned certain dangers to Nine Dragons Paper 2009 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Nine Dragons Paper 2009 Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market along with presence of high competitors increases the hazard of losing the customer base.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly overall profits of Nine Dragons Paper 2009 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in bring in a big number of consumers at a possible price.
In addition to it, the second graph which shows the yearly development in the Nine Dragons Paper 2009 Case Study Analysis total properties, shows that the business is rather effective in including worth to its possessions through its incomes. The development in assets reveals that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information might be the analysis relating to the distribution of overall earnings of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a prospective growth to accomplish its future development goal.
PESTEL analysis might be conducted to find out the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the total political forces impacting Nine Dragons Paper 2009 Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Nine Dragons Paper 2009 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the economic policies related to the import of books impact the overall organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Nine Dragons Paper 2009 Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Nine Dragons Paper 2009 Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
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 competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Nine Dragons Paper 2009 Case Study Help include the providers of the paper for releasing files. 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 Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Nine Dragons Paper 2009 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Nine Dragons Paper 2009 Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an instant solution to avoid the declining market growth. Intro of digital publishing might show to be an immediate solution with low amount of risk for the business. The business might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the data related to the customer need, the potential markets, the government guidelines and the data associated with the competitors provided in the market. After that, the company ought to decide one possible sector for its initial offering. It ought to collect research study that how it might distinguish its digital publishing from the existing competitors' products. The actions above the company must go for the initial offering. If the preliminary offering shows a success, the business ought to choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, revealing a risk to the company's long term existence, however the scenario can be managed by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.