Precise Software Solution Case Study Solution and Analysis
Precise Software Solution Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Precise Software Solution Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several questions 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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Precise Software Solution Case Study Help has specific strengths that can be made use of to reduce the hazards, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Precise Software Solution Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the business to consider numerous development opportunities with no worry of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of Precise Software Solution Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business 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 must propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is declining given that 2008, affecting Precise Software Solution Case Study Help as well, however the growth might be restored by availing particular opportunities presented in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has posed certain dangers to Precise Software Solution Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Precise Software Solution Case Study Analysis due to the customer shift towards digital libraries.
• The existence 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 customer base by utilizing certain methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the customer base.
Due to lack of data, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total incomes of Precise Software Solution Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in drawing in a large number of consumers at a possible price.
In addition to it, the 2nd graph which shows the annual development in the Precise Software Solution Case Study Help total assets, reveals that the company is rather efficient in including value to its possessions through its revenues. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis regarding the distribution of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential growth to attain its future advancement objective.
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces impacting Precise Software Solution Case Study Help business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Precise Software Solution Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Precise Software Solution Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. However, the company has a competitive position in the market with the highest 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 Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sections, with a major concentrate on academic publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Precise Software Solution Case Study Help quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
As the choices are shifting towards digital publishing and the company need an instant service to prevent the declining industry growth. The company might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must initially collects the information associated with the consumer need, the prospective markets, the government policies and the information related to the rivals provided in the market. After that, the company must choose one prospective section for its initial offering. It should gather research that how it might distinguish its digital publishing from the existing competitors' products. After all the steps above the company should go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
The growth of the publishing market is declining given that 2008, revealing a danger to the business's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The business might consider 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 new markets.