Pantera Communications Inc Case Study Solution and Analysis
Introduction
Pantera Communications Inc Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Pantera Communications Inc Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns 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 company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Pantera Communications Inc Case Study Analysis has specific strengths that can be made use of to reduce the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Pantera Communications Inc Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position allows the company to think about several development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of Pantera Communications Inc Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Pantera Communications Inc Case Study Solution too, however the development could be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has presented specific dangers to Pantera Communications Inc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Pantera Communications Inc Case Study Solution 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 competitors can get a strong customer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry along with presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be determined. The general financial performance of the company could be analyzed by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Pantera Communications Inc Case Study Solution is growing and the company is quite efficient in drawing in a a great deal of consumers at a prospective rate.
In addition to it, the second chart which shows the annual growth in the Pantera Communications Inc Case Study Help total properties, shows that the company is rather effective in adding worth to its possessions through its earnings. The development in possessions shows that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered information might be the analysis regarding the distribution of total revenues of the business. Major 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 company could move towards other organisation sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Pantera Communications Inc Case Study Analysis company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Pantera Communications Inc Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies connected to the import of books affect the general business at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative products and so on. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the Pantera Communications Inc Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Pantera Communications Inc Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Pantera Communications Inc Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Pantera Communications Inc Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining industry development. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should first gathers the information related to the consumer need, the potential markets, the federal government regulations and the information related to the competitors presented in the market. If the preliminary offering proves 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
The growth of the publishing market is declining given that 2008, revealing a hazard to the company's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
