Polar Challenge Case Study Solution and Analysis
Polar Challenge Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Polar Challenge Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions 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 abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Polar Challenge Case Study Help has certain strengths that can be used to lower the dangers, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Polar Challenge Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong monetary position permits the company to consider a number of development opportunities with no worry of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Polar Challenge Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing market is declining considering that 2008, impacting Polar Challenge Case Study Help as well, however the growth might be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed particular threats to Polar Challenge Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Polar Challenge Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry along with presence of high competition increases the hazard of losing the consumer base.
The company has a quite competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be determined. However, the overall financial performance of the business could be analyzed by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Polar Challenge Case Study Analysis is growing and the business is quite effective in drawing in a large number of clients at a potential cost.
Along with it, the second chart which shows the yearly growth in the Polar Challenge Case Study Solution overall properties, shows that the company is rather effective in adding value to its assets through its incomes. The development in assets reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the given data might be the analysis regarding the circulation of total incomes of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a possible growth to accomplish its future advancement goal.
PESTEL analysis could be carried out to find out the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting Polar Challenge Case Study Analysis company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Polar Challenge Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies associated with the import of books affect the total business at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading helpful products and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Polar Challenge Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing customer preferences.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces affecting Polar Challenge Case Study Help consists of the issues of environmental communities 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 needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the danger of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Polar Challenge Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 requires high quality documents at competitive prices.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Polar Challenge Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a major concentrate on instructional publications. CIP acts as a risk 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 marketplace share of Polar Challenge Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Polar Challenge Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its items in the market.
As the preferences are moving towards digital publishing and the business need an immediate option to prevent the decreasing market development. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should first collects the data related to the customer demand, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
The growth of the publishing market is decreasing because 2008, revealing a hazard to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.