Ocha Limited Case Study Solution and Analysis
Ocha Limited Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Ocha Limited Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Ocha Limited Case Study Analysis has specific strengths that can be used to reduce the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Ocha Limited Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the company to think about several development chances with no worry of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase restraints for the company in implementing its development program. The weak points of Ocha Limited Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is decreasing because 2008, impacting Ocha Limited Case Study Help also, but the growth might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned certain threats to Ocha Limited Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Ocha Limited Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competitors increases the threat of losing the client base.
The business has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be determined. The overall financial performance of the business could be examined by using the charts offered in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Ocha Limited Case Study Analysis is growing and the company is quite effective in drawing in a large number of customers at a prospective cost.
Together with it, the 2nd chart which reveals the yearly development in the Ocha Limited Case Study Help overall properties, shows that the company is rather effective in adding worth to its assets through its profits. The growth in possessions shows that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis concerning the distribution of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a prospective growth to accomplish its future development objective.
PESTEL analysis could be carried out to discover the numerous 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 provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting Ocha Limited Case Study Analysis business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Ocha Limited Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the overall service at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out useful products and so on. China has the greatest population worldwide with a high population development, revealing the increasing number of customers of the Ocha Limited Case Study Solution. However, the customer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Ocha Limited Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to 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 first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard 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 market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the virtual libraries on specific sites. The altering customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Ocha Limited Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 documents at competitive prices.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Ocha Limited Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Ocha Limited Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
As the choices are moving towards digital publishing and the business require an immediate service to prevent the declining industry growth. The business might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the customer need, the potential markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing market is declining given that 2008, revealing a threat to the business's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.