Preferred Apartment Community 2 Case Study Solution and Analysis
Introduction
Preferred Apartment Community 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and Preferred Apartment Community 2 Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change 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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Preferred Apartment Community 2 Case Study Solution has specific strengths that can be used to reduce the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Preferred Apartment Community 2 Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position enables the business to think about several advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its development program. The weak points of Preferred Apartment Community 2 Case Study Help are offered as follows;
• Despite of being a science and innovation 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 needs to propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Preferred Apartment Community 2 Case Study Analysis as well, but the development could be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually posed certain hazards to Preferred Apartment Community 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Preferred Apartment Community 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. The general financial performance of the business might be examined by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Preferred Apartment Community 2 Case Study Solution is growing and the company is quite effective in bring in a a great deal of consumers at a prospective rate.
Along with it, the second graph which shows the yearly growth in the Preferred Apartment Community 2 Case Study Analysis overall properties, shows that the business is quite effective in including worth to its assets through its earnings. The growth in assets reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis regarding the circulation of overall profits of the company. Major 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 business could move towards other business segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Preferred Apartment Community 2 Case Study Solution in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the total organisation at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products and so on. China has the highest population worldwide with a high population development, revealing the increasing number of customers of the Preferred Apartment Community 2 Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Preferred Apartment Community 2 Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry 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 enter in the market.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the documents presented in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Preferred Apartment Community 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Preferred Apartment Community 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in different market segments, with a major focus on instructional publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Preferred Apartment Community 2 Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate option to avoid the declining market growth. The company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially gathers the data connected to the customer demand, the possible markets, the federal government regulations and the data associated with the rivals provided in the market. After that, the business must choose one prospective segment for its initial offering. It should collect research study that how it might separate its digital publishing from the existing competitors' products. After all the steps above the company should go for the preliminary offering. If the preliminary offering shows a success, the business ought to choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a danger to the business's long term existence, however the circumstance can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
