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Piedmont University 4 Case Solution

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Piedmont University 4 Case Study Solution and Analysis


Introduction

Piedmont University 4 Case Study Help is the largest publishing company with a greatest 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 business through the integration of print media, audio-visual media and the network media.

Critical Issues

Although, Piedmont University 4 Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These elements consist of;

• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
Executive Summary
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Piedmont University 4 Case Study Solution has certain strengths that can be made use of to reduce the risks, overcome the weak point and get the chances. Strengths of CMP are provided as follows;

• The long term experience of Piedmont University 4 Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position allows the business to think about numerous development chances without any worry of raising fund externally.

Weak points

Together with the strengths, the company has particular weak points which might increase constraints for the business in implementing its advancement program. The weak points of Piedmont University 4 Case Study Solution are offered as follows;

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

The growth of the publishing industry is declining given that 2008, impacting Piedmont University 4 Case Study Solution as well, however the development could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;

• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.

Hazards

The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed certain risks to Piedmont University 4 Case Study Analysis including;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Piedmont University 4 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the threat of losing the client base.

Financial Analysis.
Swot Analysis
Due to lack of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual total earnings of Piedmont University 4 Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a prospective cost.

Along with it, the 2nd graph which shows the annual growth in the Piedmont University 4 Case Study Solution total possessions, reveals that the business is quite effective in adding value to its possessions through its profits. The development in properties shows that the overall worth of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).

Another financial analysis of the business utilizing the provided information might be the analysis relating to the distribution of total revenues of the business. 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 company could move towards other business sections with a potential growth to accomplish its future advancement objective.

PESTEL Analysis

PESTEL analysis could be carried out to learn the various external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in basic and the Piedmont University 4 Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.

Social and Demographical.

Social and demographical forces include the population development, the consumer's choices towards reading informative materials etc. China has the greatest population on the planet with a high population development, revealing the increasing number of consumers of the Piedmont University 4 Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.

Technological.

Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Piedmont University 4 Case Study Analysis consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.

Industry Analysis (Porter's Five Forces Model).

Porter's 5 Forces Design might be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.

Risk of New Entrants.

Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.

Threat of Alternative.

Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the virtual libraries on certain sites. The altering consumer choices towards digital knowing increase the danger of substitution for the industry.

Competitive Rivalry.

Competitive rivalry in the publishing market 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. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.

Bargaining Power of Provider.

The major providers of the Piedmont University 4 Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of purchaser 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 purchasers needs high quality files at competitive costs.

Rivals Analysis.

CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Piedmont University 4 Case Study Analysis include;.

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

Chemical Market Press (CIP).

CIP acts as a hazard 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 quickly in the existing market scenario.

Posts and telecommunication Press (PTP).

It was also established in the very same duration as Piedmont University 4 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-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 business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an immediate option to avoid the decreasing industry growth. Therefore, intro of digital publishing could prove to be an instant service with low quantity of danger for the business. Nevertheless, the company could also consider 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 first gathers the information related to the customer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

The development of the publishing market is decreasing given that 2008, showing a risk to the company's long term presence, but the scenario can be managed by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.

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