Parexel International Corp B Case Study Solution and Analysis
Introduction
Parexel International Corp B Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and Parexel International Corp B Case Study Analysis in specific. These elements include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 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
Parexel International Corp B Case Study Solution has particular strengths that can be made use of to minimize the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Parexel International Corp B Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong monetary position allows the company to think about numerous advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restrictions for the business in executing its development program. The weak points of Parexel International Corp B Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable 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 accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Parexel International Corp B Case Study Help also, however the development could be revived by availing specific chances provided in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented particular risks to Parexel International Corp B Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Parexel International Corp B Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market along with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly overall earnings of Parexel International Corp B Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a potential rate.
Together with it, the second chart which shows the annual development in the Parexel International Corp B Case Study Help total assets, reveals that the business is rather efficient in adding worth to its assets through its revenues. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the distribution of total profits of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting Parexel International Corp B Case Study Help organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Parexel International Corp B Case Study Solution. However, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and innovation along with the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Parexel International Corp B Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Parexel International Corp B Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total 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 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 an extremely competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Parexel International Corp B Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the 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 gamers in the publishing industry with an annual overall profits 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 impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger 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 existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value 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 industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining industry growth. Introduction of digital publishing might prove to be an instant service with low amount of threat for the company. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to initially collects the information related to the consumer need, the prospective markets, the federal government guidelines 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
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term existence, however the situation can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
