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Preferred Apartment Community 2 Case Solution

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Preferred Apartment Community 2 Case Study Solution and Analysis


Introduction

Preferred Apartment Community 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.

Vital Issues

CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and Preferred Apartment Community 2 Case Study Solution in particular. These aspects include;

• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
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 valuable experience, technical resources and the capabilities of the business could be made use of 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


Preferred Apartment Community 2 Case Study Analysis has specific strengths that can be utilized to reduce the threats, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;

• The long term experience of Preferred Apartment Community 2 Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the company to think about a number of advancement opportunities without any fear of raising fund externally.

Weak points

Together with the strengths, the business has specific weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Preferred Apartment Community 2 Case Study Solution are offered as follows;

• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is declining given that 2008, impacting Preferred Apartment Community 2 Case Study Help too, but the development might be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;

• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.

Risks

The changing macro trends in the market and increasing competitors in the publishing market has actually postured particular dangers to Preferred Apartment Community 2 Case Study Solution consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Preferred Apartment Community 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competition increases the danger of losing the client base.

Financial Analysis.
Swot Analysis
The company has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. The general financial efficiency of the company might be evaluated by using the charts provided in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Preferred Apartment Community 2 Case Study Help is growing and the business is quite effective in attracting a a great deal of customers at a prospective cost.

Together with it, the second chart which reveals the annual development in the Preferred Apartment Community 2 Case Study Solution total properties, shows that the business is rather effective in including value to its properties through its profits. The growth in properties shows that the overall value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).

Another monetary analysis of the company using the provided information could be the analysis relating to the distribution of overall profits of the company. Huge part of the earnings 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 segments with a possible growth to accomplish its future advancement goal.

PESTEL Analysis

PESTEL analysis could be conducted to learn the various external forces impacting the performance of the company 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 could have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.

Affordable.

Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market.

Social and Demographical.

The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces impacting Preferred Apartment Community 2 Case Study Help includes the issues of ecological communities over the use 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 needs to not be damaging for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.

Market Analysis (Porter's 5 Forces Model).

Porter's Five Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.

Danger of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.

Danger of Substitution.

Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the danger of replacement for the industry.

Competitive Competition.

Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant providers of the Preferred Apartment Community 2 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.

Rivals Analysis.

CMP runs in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Preferred Apartment Community 2 Case Study Analysis consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in numerous market segments, with a major focus on educational publications. CIP serves 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 could wean the marketplace share of Preferred Apartment Community 2 Case Study Analysis quickly in the current market scenario.

Posts and telecommunication Press (PTP).

It was also established in the same period as Preferred Apartment Community 2 Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.

Recommendations

As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the decreasing market growth. The company could also consider the expansion program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its product portfolio, the company should first collects the data associated with the customer demand, the prospective markets, the government guidelines and the data related to the competitors presented in the market. After that, the business needs to choose one prospective sector for its preliminary offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the company should go for the initial offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the business would have the ability to implement its digital publishing program.

Conclusion

The growth of the publishing market is decreasing considering that 2008, showing a danger to the business's long term existence, however the scenario can be managed by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.

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