Parexel International Corp A Case Study Solution and Analysis
Introduction
Parexel International Corp A Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Parexel International Corp A Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement 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 capabilities of the business could be made use of 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
Parexel International Corp A Case Study Analysis has specific strengths that can be made use of to minimize the hazards, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Parexel International Corp A Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position enables the business to think about numerous development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Parexel International Corp A Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting Parexel International Corp A Case Study Analysis as well, however the development could be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has postured particular hazards to Parexel International Corp A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Parexel International Corp A 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 danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the company could be evaluated by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Parexel International Corp A Case Study Solution is growing and the business is rather efficient in attracting a a great deal of consumers at a potential price.
Together with it, the 2nd graph which reveals the annual development in the Parexel International Corp A Case Study Solution total properties, shows that the business is rather efficient in adding worth to its assets through its incomes. The development in properties shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis regarding the circulation of overall incomes of the company. 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 could move towards other organisation sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Parexel International Corp A Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers 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 participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Parexel International Corp A Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Parexel International Corp A Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a significant concentrate on instructional publications. CIP functions 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 could wean the market share of Parexel International Corp A Case Study Help easily in the present market scenario.
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 6th in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business need an immediate service to avoid the decreasing market development. Introduction of digital publishing might show to be an instant service with low quantity of risk for the company. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to initially gathers the data related to the consumer demand, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, revealing a threat to the business's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
