Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution and Analysis
Intro
Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing info and interaction services. Significant organisation sections of the company include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution has ended up being a specialized details supplier and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 situation? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Help has certain strengths that can be used to lower the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position enables the company to think about several development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its advancement program. The weak points of Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing because 2008, impacting Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Help as well, however the development could be revived by availing certain chances presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has postured particular threats to Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the market in addition to presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall profits of Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is quite effective in drawing in a big number of customers at a prospective cost.
Together with it, the 2nd chart which shows the annual development in the Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Help overall assets, reveals that the company is quite efficient in including value to its properties through its incomes. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the circulation of overall profits of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful products etc. China has the greatest population in the world with a high population growth, revealing the increasing number of customers of the Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Old Problems Remain New Ones Crop Up Political Risk In The 21st Century Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate option to prevent the declining market development. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to first gathers the information related to the customer demand, the potential markets, the government guidelines and the data related to the competitors presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a hazard to the company's long term presence, but the scenario can be managed by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
