Olivet Nazarene University Case Study Solution and Analysis
Intro
Olivet Nazarene University Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering details, processing details and communication services. Significant business segments of the company include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major products consist of books, regulars, online media, exhibits, research reports and so on. Olivet Nazarene University Case Study Analysis has actually ended up being a specialized details provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and Olivet Nazarene University Case Study Analysis in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 important experience, technical resources and the abilities of the business could be utilized 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
Olivet Nazarene University Case Study Analysis has particular strengths that can be utilized to minimize the threats, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Olivet Nazarene University Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to think about numerous advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Olivet Nazarene University Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, 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 growth. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Olivet Nazarene University Case Study Solution also, however the growth might be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has postured specific risks to Olivet Nazarene University Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Olivet Nazarene University Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total earnings of Olivet Nazarene University Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is rather efficient in attracting a large number of consumers at a possible cost.
Along with it, the second chart which shows the yearly growth in the Olivet Nazarene University Case Study Solution overall possessions, shows that the business is rather effective in adding worth to its possessions through its incomes. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the circulation of overall incomes of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting Olivet Nazarene University Case Study Analysis company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Olivet Nazarene University Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the appearance of the publishing market 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 Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released documents is the documents presented in the digital libraries on certain websites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Olivet Nazarene University Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Olivet Nazarene University Case Study Help 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 might wean the market share of CMP easily in the present 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 business scale. It is also among the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors 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 products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the declining market development. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the data connected to the customer need, the potential markets, the government policies and the information related to the rivals provided in the market. After that, the company ought to choose one prospective section for its preliminary offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the company must go for the initial offering. If the preliminary offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a danger to the company's long term presence, however the scenario can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
