Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Solution and Analysis
Introduction
Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Help in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Solution has certain strengths that can be made use of to reduce the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position allows the company to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weak points of Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional 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 specific growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Help too, but the growth could be restored by availing specific chances presented in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has presented certain threats to Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be computed. The general monetary efficiency of the company might be examined by utilizing the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Help is growing and the company is quite effective in bring in a a great deal of clients at a potential rate.
In addition to it, the second chart which shows the annual growth in the Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Analysis total assets, reveals that the business is rather efficient in adding value to its properties through its earnings. The development in assets shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis concerning the circulation of overall profits of the business. Huge part of the profits 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 service sectors with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books impact the total organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Help consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must 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 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five 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 market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on certain websites. 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 Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and second in various market sectors, with a major concentrate on instructional publications. CIP serves 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 could wean the market share of Pakistan Is Foreign Aid Helping Or Hindering Development Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal 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 choices are moving towards digital publishing and the company require an instant service to prevent the declining industry growth. Introduction of digital publishing might show to be an immediate option with low quantity of threat for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information associated with the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. After that, the company must decide one possible sector for its preliminary offering. It must gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company must opt for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a danger to the business's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
