Praying For Prosperity Case Study Solution and Analysis
Introduction
Praying For Prosperity Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Praying For Prosperity Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 company could be made use of 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
Praying For Prosperity Case Study Analysis has particular strengths that can be used to lower the threats, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Praying For Prosperity Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position permits the company to think about numerous development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase restraints for the business in executing its development program. The weak points of Praying For Prosperity Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Praying For Prosperity Case Study Solution as well, however the growth might be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific dangers to Praying For Prosperity Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Praying For Prosperity Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly total earnings of Praying For Prosperity Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a large number of clients at a potential price.
In addition to it, the 2nd graph which reveals the annual development in the Praying For Prosperity Case Study Help total assets, shows that the company is quite efficient in including worth to its properties through its earnings. The growth in possessions reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis regarding the distribution of overall incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Praying For Prosperity Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the virtual libraries on specific websites. The altering consumer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Praying For Prosperity Case Study Solution include the providers of the paper for releasing documents. 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 Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Praying For Prosperity Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Praying For Prosperity Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the declining market development. Introduction of digital publishing might prove to be an instant option with low amount of risk for the company. The company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should initially collects the data connected to the consumer need, the possible markets, the government policies and the information related to the competitors provided in the market. After that, the company should decide one possible sector for its initial offering. It must collect research that how it could distinguish its digital publishing from the existing competitors' items. After all the steps above the company ought to go for the preliminary offering. The company should go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a hazard to the company's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
