Playing At Serial Acquisitions Case Study Solution and Analysis
Intro
Playing At Serial Acquisitions Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details service provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Playing At Serial Acquisitions Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions 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 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
Playing At Serial Acquisitions Case Study Solution has certain strengths that can be used to lower the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Playing At Serial Acquisitions Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong monetary position allows the business to consider a number of advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its advancement program. The weaknesses of Playing At Serial Acquisitions Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Playing At Serial Acquisitions Case Study Help as well, however the growth could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has posed specific risks to Playing At Serial Acquisitions Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Playing At Serial Acquisitions Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the risk of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be determined. However, the general monetary efficiency of the company could be analyzed by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Playing At Serial Acquisitions Case Study Help is growing and the company is rather effective in drawing in a a great deal of clients at a prospective price.
Together with it, the 2nd chart which reveals the annual development in the Playing At Serial Acquisitions Case Study Help total possessions, shows that the company is quite efficient in including value to its properties through its earnings. The development in properties shows that the overall value of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis relating to the distribution of overall revenues of the company. Major part of the revenues 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 organisation sections with a possible development 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 recent patterns 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 might have a substantial influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP service 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 CMP in specific includesthe rates 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 preferences towards checking out helpful products and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the Playing At Serial Acquisitions Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Playing At Serial Acquisitions Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing industry 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 Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Playing At Serial Acquisitions Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Playing At Serial Acquisitions Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a big period, CIP held the biggest market share, and still ranks second and third in numerous market sectors, with a major concentrate on academic publications. CIP serves 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 marketplace share of Playing At Serial Acquisitions Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also 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 players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 business sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
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 suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the decreasing market development. For that reason, introduction of digital publishing could show to be an immediate service with low amount of threat for the business. However, the business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must first collects the data related to the customer demand, the prospective markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a danger to the company's long term existence, however the situation can be managed by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
