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Piedmont University 4 Case Study Solution and Analysis


Introduction

Piedmont University 4 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing information and interaction services. Major organisation segments of the company consist of; books, periodicals, consultancy and circulation. The business has a large product portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports and so on. Piedmont University 4 Case Study Analysis has ended up being a specialized information provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.

Critical Issues

CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and Piedmont University 4 Case Study Solution in particular. These elements consist of;

• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
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 valuable experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Piedmont University 4 Case Study Help has specific strengths that can be utilized to lower the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;

• The long term experience of Piedmont University 4 Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position permits the business to consider a number of development opportunities with no fear of raising fund externally.

Weaknesses

In addition to the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weak points of Piedmont University 4 Case Study Help are given as follows;

• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is decreasing since 2008, affecting Piedmont University 4 Case Study Help also, but the development might be revived by availing specific chances provided in the market. The market opportunities for CMP include;

• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.

Risks

The altering macro trends in the market and increasing competition in the publishing industry has actually posed specific risks to Piedmont University 4 Case Study Solution including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Piedmont University 4 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market together with existence of high competitors increases the threat of losing the consumer base.

Monetary Analysis.
Swot Analysis
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be calculated. However, the general monetary performance of the company might be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Piedmont University 4 Case Study Help is growing and the company is rather efficient in attracting a a great deal of customers at a prospective price.

Together with it, the 2nd chart which reveals the annual growth in the Piedmont University 4 Case Study Help total properties, shows that the company is quite effective in adding value to its possessions through its revenues. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).

Another financial analysis of the company utilizing the provided information might be the analysis regarding the distribution of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a prospective development to attain its future advancement objective.

PESTEL Analysis

PESTEL analysis could be carried out to discover the numerous external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Piedmont University 4 Case Study Help company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.

Affordable.

Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market.

Social and Demographical.

The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.

Technological.

Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces affecting Piedmont University 4 Case Study Solution consists of the issues of environmental 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 used while publishing ought to not be hazardous for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.

Market Analysis (Porter's 5 Forces Model).

Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.

Hazard of New Entrants.

Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.

Risk of Substitution.

Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the documents provided in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the danger of replacement for the industry.

Competitive Rivalry.

Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.

Bargaining Power of Supplier.

The major suppliers of the Piedmont University 4 Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Bargaining 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 market saturation, the buyers needs high quality files at competitive costs.

Competitors Analysis.

CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Piedmont University 4 Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a major concentrate on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Piedmont University 4 Case Study Solution easily in the present market circumstance.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.

Recommendations

With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry growth. For that reason, intro of digital publishing might prove to be an instant service with low quantity of danger for the business. Nevertheless, the company might likewise think about the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the company should first gathers the data related to the consumer need, the possible markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to 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 since 2008, revealing a threat to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.

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