Oncidium Business Consulting A1 Case Study Solution and Analysis
Introduction
Oncidium Business Consulting A1 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing details and interaction services. Significant service segments of the business consist of; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports etc. Oncidium Business Consulting A1 Case Study Solution has actually ended up being a specialized details provider and a large comprehensive Science and Innovation 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 smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and Oncidium Business Consulting A1 Case Study Solution in particular. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Oncidium Business Consulting A1 Case Study Analysis has specific strengths that can be made use of to decrease the hazards, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Oncidium Business Consulting A1 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position permits the company to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weak points of Oncidium Business Consulting A1 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, 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 growth. It should propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting Oncidium Business Consulting A1 Case Study Solution as well, however the growth might be revived by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has positioned specific threats to Oncidium Business Consulting A1 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Oncidium Business Consulting A1 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total earnings of Oncidium Business Consulting A1 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in drawing in a big number of customers at a potential rate.
Along with it, the second graph which shows the annual development in the Oncidium Business Consulting A1 Case Study Analysis overall assets, shows that the business is rather efficient in including worth to its assets through its revenues. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis concerning the distribution of total profits of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Oncidium Business Consulting A1 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the total business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Oncidium Business Consulting A1 Case Study Solution includes the issues of ecological neighborhoods 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 needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs 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 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. However, 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 Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry 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. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Oncidium Business Consulting A1 Case Study Help include the providers of the paper for releasing documents. 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.
Haggling 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 purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Oncidium Business Consulting A1 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in different market segments, with a major focus on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Oncidium Business Consulting A1 Case Study Analysis quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• 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: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business 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 market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining industry growth. Introduction of digital publishing might show to be an instant option with low quantity of danger for the company. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should initially collects the information related to the customer need, the possible markets, the federal government policies and the information associated with the rivals provided in the market. After that, the company ought to decide one prospective section for its initial offering. It should gather research that how it might differentiate its digital publishing from the existing rivals' products. The actions above the company must go for the initial offering. The business must go for the other markets if the initial offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a risk to the company's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
