Polar Challenge Case Study Solution and Analysis
Introduction
Polar Challenge Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering information, processing info and communication services. Major service sectors of the business consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. Polar Challenge Case Study Help has ended up being a specialized info provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and Polar Challenge Case Study Analysis in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Polar Challenge Case Study Help has certain strengths that can be utilized to reduce the threats, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Polar Challenge Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position enables the business to think about a number of development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Polar Challenge Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Polar Challenge Case Study Help too, but the growth could be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific hazards to Polar Challenge Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Polar Challenge Case Study Help due to the customer shift towards virtual 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 gain a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual total profits of Polar Challenge Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather effective in bring in a large number of clients at a potential rate.
Together with it, the 2nd graph which reveals the yearly growth in the Polar Challenge Case Study Help overall assets, shows that the company is quite effective in adding value to its assets through its incomes. The development in possessions reveals that the total value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis relating to the distribution of total profits of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces impacting Polar Challenge Case Study Solution service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Polar Challenge Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the total business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative materials and so on. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Polar Challenge Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Polar Challenge Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition 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 marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Polar Challenge Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Polar Challenge Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant option to prevent the decreasing market development. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the information connected to the customer demand, the potential markets, the federal government regulations and the data associated with the rivals provided in the market. After that, the business needs to choose one prospective section for its initial offering. It needs to collect research that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the business should go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a threat to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
