Oncidium Business Consulting A2 Case Study Solution and Analysis
Introduction
Oncidium Business Consulting A2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Oncidium Business Consulting A2 Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous 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 abilities of the business could be utilized 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 A2 Case Study Solution has particular strengths that can be used to reduce the threats, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Oncidium Business Consulting A2 Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong monetary position enables the company to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase restraints for the company in implementing its development program. The weaknesses of Oncidium Business Consulting A2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting Oncidium Business Consulting A2 Case Study Analysis also, but the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has presented particular risks to Oncidium Business Consulting A2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Oncidium Business Consulting A2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be determined. The overall financial performance of the business could be evaluated by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Oncidium Business Consulting A2 Case Study Solution is growing and the company is rather efficient in drawing in a large number of consumers at a possible rate.
Along with it, the 2nd chart which shows the yearly development in the Oncidium Business Consulting A2 Case Study Help total possessions, reveals that the business is quite efficient in including value to its possessions through its profits. The development in properties shows that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis relating to the circulation of overall profits 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 business could move towards other business segments with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could 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 Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting Oncidium Business Consulting A2 Case Study Solution service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, 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 include the population development, the consumer's preferences towards reading helpful materials etc. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Oncidium Business Consulting A2 Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Oncidium Business Consulting A2 Case Study Analysis includes the issues of ecological 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 needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the virtual libraries on specific websites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along 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 Oncidium Business Consulting A2 Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Oncidium Business Consulting A2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market segments, with a major focus on academic publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Oncidium Business Consulting A2 Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Oncidium Business Consulting A2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the declining industry growth. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first gathers the information associated with the customer demand, the potential markets, the government regulations and the data connected to the rivals presented in the market. After that, the business should choose one possible sector for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business need to go for the initial offering. If the initial offering proves a success, the company must opt for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term existence, but the circumstance can be controlled by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
