Optigen Case Study Solution and Analysis
Intro
Optigen Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details company and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Optigen Case Study Help has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Optigen Case Study Analysis has particular strengths that can be used to minimize the threats, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Optigen Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the business to think about several development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase restrictions for the company in implementing its advancement program. The weaknesses of Optigen Case Study Help are given as follows;
• Despite of being a science and technology 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 must propose particular growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Optigen Case Study Help as well, however the growth might be restored by availing certain chances provided in the market. The market chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually presented certain threats to Optigen Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Optigen Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly overall revenues of Optigen 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 rather efficient in bring in a big number of customers at a prospective rate.
Along with it, the second graph which reveals the yearly growth in the Optigen Case Study Help total possessions, shows that the company is rather effective in adding value to its possessions through its incomes. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis regarding the distribution of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative products and so on. China has the highest population in the world with a high population development, revealing the increasing number of consumers of the Optigen Case Study Solution. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Optigen 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 disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines 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 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Optigen Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Optigen Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP publishes similar type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in numerous market sections, with a major focus on educational publications. CIP functions as a hazard 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 market share of Optigen Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Optigen Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an immediate service to prevent the declining market development. Therefore, intro of digital publishing could prove to be an instant option with low quantity of risk for the company. The business could also 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 first gathers the information related to the customer demand, the prospective markets, the federal government regulations and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a risk to the business's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
