Note On Water Case Study Solution and Analysis
Intro
Note On Water Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and Note On Water Case Study Help in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions 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 company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Note On Water Case Study Analysis has specific strengths that can be made use of to lower the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Note On Water Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong financial position permits the company to think about numerous development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase restrictions for the business in executing its development program. The weak points of Note On Water Case Study Solution are given 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 extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Note On Water Case Study Help as well, but the development might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed particular threats to Note On Water Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Note On Water Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number 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 customer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall revenues of Note On Water Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is rather effective in drawing in a large number of clients at a prospective price.
Together with it, the second graph which shows the annual development in the Note On Water Case Study Solution total possessions, reveals that the company is quite efficient in including worth to its properties through its earnings. The growth in possessions reveals that the total value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the circulation of overall earnings of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state 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 Party of China. It could be stated that the overall political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Note On Water Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the total business at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Note On Water Case Study Help includes 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.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers 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 likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Note On Water Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Note On Water Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a significant concentrate on academic publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Note On Water Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the declining market development. Therefore, introduction of digital publishing could prove to be an instant service with low amount of danger for the business. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the information related to the consumer need, the prospective markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
