Ocha Limited Case Study Solution and Analysis
Intro
Ocha Limited Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Ocha Limited Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry 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.
• Introduction of digital publishing techniques
• 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 situation? Do the long valuable experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ocha Limited Case Study Solution has particular strengths that can be utilized to lower the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ocha Limited Case Study Help 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 produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong monetary position allows the business to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Ocha Limited Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, 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 ought to propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting Ocha Limited Case Study Solution as well, however the growth might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has posed certain hazards to Ocha Limited Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Ocha Limited Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP could not be computed. The general monetary performance of the company could be examined by utilizing the graphs offered in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Ocha Limited Case Study Help is growing and the business is rather effective in bring in a large number of consumers at a potential rate.
In addition to it, the second graph which reveals the yearly growth in the Ocha Limited Case Study Help total properties, shows that the business is rather effective in adding worth to its properties through its revenues. The development in properties reveals that the overall value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of overall incomes of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Ocha Limited Case Study Help company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Ocha Limited Case Study Help in specific includesthe prices of paper, the income 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. Along with it, the financial policies related to the import of books impact the total service at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Ocha Limited Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially 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 Five Forces Model might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Ocha Limited Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Ocha Limited Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Ocha Limited Case Study Help and CIP. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining market growth. For that reason, introduction of digital publishing could show to be an instant solution with low amount of threat for the company. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the consumer need, the possible markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a hazard to the company's long term presence, however the situation can be controlled by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
