Preferred Apartment Community Case Study Solution and Analysis
Intro
Preferred Apartment Community Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and Preferred Apartment Community Case Study Analysis in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
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 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 Case Study Help has certain strengths that can be made use of to decrease the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Preferred Apartment Community Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position allows the company to consider a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Preferred Apartment Community Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods 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 prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Preferred Apartment Community Case Study Help too, but the development might be revived by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has positioned specific risks to Preferred Apartment Community Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Preferred Apartment Community Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual total incomes of Preferred Apartment Community Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a big number of customers at a possible rate.
Along with it, the 2nd chart which shows the annual growth in the Preferred Apartment Community Case Study Help overall properties, shows that the business is quite efficient in adding value to its possessions through its earnings. The growth in properties reveals that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis regarding the circulation of total profits of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the total political forces impacting Preferred Apartment Community Case Study Help business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Preferred Apartment Community Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the total organisation at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products and so on. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Preferred Apartment Community Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology together with the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Preferred Apartment Community Case Study Help includes the concerns 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 used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the documents presented in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry 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 competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Preferred Apartment Community Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Preferred Apartment Community Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Preferred Apartment Community Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing market development. Introduction of digital publishing might prove to be an immediate solution with low quantity of threat for the company. The company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first gathers the information related to the customer need, the possible markets, the federal government policies and the information connected to the rivals presented in the market. After that, the company must decide one prospective section for its preliminary offering. It should collect research that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the company need to opt for the initial offering. If the preliminary offering proves a success, the company should choose the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, revealing a danger to the company's long term presence, however the situation can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
