Precise Software Solution Case Study Solution and Analysis
Intro
Precise Software Solution Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Precise Software Solution Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of concerns 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 used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Precise Software Solution Case Study Solution has particular strengths that can be used to minimize the hazards, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Precise Software Solution Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its clients.
• Strong financial position allows the business to consider numerous development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase constraints for the company in executing its advancement program. The weaknesses of Precise Software Solution Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Precise Software Solution Case Study Help also, but the growth could be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific dangers to Precise Software Solution Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Precise Software Solution Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total profits of Precise Software Solution Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather effective in attracting a large number of clients at a prospective rate.
In addition to it, the second graph which shows the annual growth in the Precise Software Solution Case Study Help overall possessions, shows that the company is rather effective in adding worth to its possessions through its earnings. The growth in possessions reveals that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the distribution of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Precise Software Solution Case Study Help service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Precise Software Solution Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Precise Software Solution Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents presented in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Precise Software Solution Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Precise Software Solution Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Precise Software Solution Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an instant solution to prevent the decreasing industry development. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first collects the data related to the consumer need, the prospective markets, the federal government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a danger to the company's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
