Phelps Dodge Corporation 2 Case Study Solution and Analysis
Phelps Dodge Corporation 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering info, processing details and communication services. Significant organisation sections of the business include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its major items include books, regulars, online media, exhibitions, research reports and so on. Phelps Dodge Corporation 2 Case Study Help has become a specialized information service provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Phelps Dodge Corporation 2 Case Study Analysis in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement 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 valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Phelps Dodge Corporation 2 Case Study Solution has specific strengths that can be made use of to reduce the risks, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Phelps Dodge Corporation 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong financial position permits the business to consider several development chances without any worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of Phelps Dodge Corporation 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing market is decreasing since 2008, impacting Phelps Dodge Corporation 2 Case Study Solution as well, but the growth might be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned particular threats to Phelps Dodge Corporation 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Phelps Dodge Corporation 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number 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 using specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competitors increases the threat of losing the customer base.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual overall earnings of Phelps Dodge Corporation 2 Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite efficient in drawing in a big number of consumers at a prospective rate.
Along with it, the 2nd graph which shows the yearly growth in the Phelps Dodge Corporation 2 Case Study Solution total possessions, shows that the company is quite efficient in including worth to its properties through its incomes. The growth in properties shows that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis regarding the distribution of overall earnings of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible growth to attain its future development objective.
PESTEL analysis might be performed to learn the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces impacting Phelps Dodge Corporation 2 Case Study Solution consists of the concerns 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 utilized while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital learning increase the threat of replacement for the market.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Phelps Dodge Corporation 2 Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 marketplace saturation, the buyers requires high quality files at competitive rates.
CMP runs in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Phelps Dodge Corporation 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its products in the market.
As the choices are moving towards digital publishing and the company need an immediate option to avoid the declining industry growth. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the information connected to the customer need, the possible markets, the government policies and the information connected to the rivals presented in the market. After that, the business should decide one prospective sector for its preliminary offering. It ought to collect research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the business ought to choose the initial offering. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the business would have the ability to execute its digital publishing program.
Although, the development of the publishing market is declining since 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the new markets.