One Acre Fund Outgrowing The Board Case Study Solution and Analysis
Intro
One Acre Fund Outgrowing The Board Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, One Acre Fund Outgrowing The Board Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects consist of;
• Entrance of the 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 improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
One Acre Fund Outgrowing The Board Case Study Solution has particular strengths that can be used to lower the risks, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of One Acre Fund Outgrowing The Board Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the business to think about several development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase constraints for the business in implementing its development program. The weak points of One Acre Fund Outgrowing The Board Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting One Acre Fund Outgrowing The Board Case Study Solution also, but the growth might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize 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 actually positioned certain dangers to One Acre Fund Outgrowing The Board Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of One Acre Fund Outgrowing The Board Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall revenues of One Acre Fund Outgrowing The Board Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in bring in a large number of clients at a potential price.
Along with it, the 2nd graph which shows the yearly development in the One Acre Fund Outgrowing The Board Case Study Analysis total properties, shows that the business is quite effective in adding worth to its properties through its profits. The development in assets shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the circulation of total earnings of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sections with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different 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 given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the One Acre Fund Outgrowing The Board Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies related to the import of books impact the general service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences 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 changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting One Acre Fund Outgrowing The Board Case Study Help includes the concerns of ecological 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 must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the One Acre Fund Outgrowing The Board Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of One Acre Fund Outgrowing The Board Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate 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.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate service to avoid the declining industry growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first gathers the information associated with the consumer need, the prospective markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the business must choose one prospective section for its preliminary offering. It must gather research study that how it could separate its digital publishing from the existing rivals' products. After all the actions above the company ought to opt 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 be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, revealing a hazard to the business's long term existence, however the scenario can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
