Praying For Prosperity Case Study Solution and Analysis
Praying For Prosperity Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Praying For Prosperity Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Praying For Prosperity Case Study Analysis has specific strengths that can be utilized to decrease the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Praying For Prosperity Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the company to think about a number of development chances with no worry of raising fund externally.
Along with the strengths, the company has specific weak points which might increase restrictions for the company in implementing its advancement program. The weaknesses of Praying For Prosperity Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
The development of the publishing market is decreasing considering that 2008, impacting Praying For Prosperity Case Study Analysis as well, but the growth could be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competition in the publishing market has postured particular dangers to Praying For Prosperity Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Praying For Prosperity Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the consumer base.
The business has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. The general financial performance of the business could be evaluated by using the charts given in the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Praying For Prosperity Case Study Solution is growing and the company is rather efficient in bring in a large number of customers at a potential cost.
Along with it, the second chart which shows the annual growth in the Praying For Prosperity Case Study Help total possessions, reveals that the company is quite effective in adding worth to its possessions through its revenues. The development in properties shows that the overall worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the circulation of overall profits of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible development to accomplish its future advancement goal.
PESTEL analysis might be performed to find out the various 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 provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Praying For Prosperity Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the overall organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces impacting Praying For Prosperity Case Study Help consists of the issues of ecological neighborhoods 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 utilized while publishing must not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat 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 websites. The altering customer choices towards digital learning increase the risk of alternative for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Praying For Prosperity Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Praying For Prosperity Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 might wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining market development. For that reason, introduction of digital publishing might show to be an immediate solution with low quantity of risk for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first collects the information connected to the customer need, the potential markets, the government policies and the information related to the rivals presented in the market. After that, the company ought to choose one possible section for its preliminary offering. It ought to gather research study that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the company must go for the preliminary offering. The company needs to go for the other markets if the initial offering proves a success. In this method the company would have the ability to implement its digital publishing program.
The growth of the publishing market is declining since 2008, showing a risk to the company's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The company might 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.