Orion Shield Case Study Solution and Analysis
Introduction
Orion Shield Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing information and interaction services. Significant service segments of the company consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. Orion Shield Case Study Help has actually ended up being a specialized information provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing market in general and Orion Shield Case Study Help in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement 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 valuable experience, technical resources and the capabilities 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
Orion Shield Case Study Help has specific strengths that can be made use of to minimize the dangers, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Orion Shield Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the company to think about a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Orion Shield Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining since 2008, affecting Orion Shield Case Study Solution as well, but the growth might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned specific risks to Orion Shield Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Orion Shield Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total profits of Orion Shield Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in bring in a big number of consumers at a potential rate.
Along with it, the 2nd chart which shows the annual growth in the Orion Shield Case Study Solution overall assets, reveals that the business is quite efficient in including value to its properties through its incomes. The development in possessions shows that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of overall incomes of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic 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 impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Orion Shield Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on specific sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition 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 competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Orion Shield Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Orion Shield Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in numerous market segments, with a significant focus on academic publications. CIP acts as a risk 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 marketplace share of Orion Shield Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Orion Shield Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 business sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information related to the customer need, the prospective markets, the federal government regulations and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute 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, but the situation can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
