Prelude Co Case Study Solution and Analysis
Introduction
Prelude Co Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing information and communication services. Major business sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports etc. Prelude Co Case Study Analysis has actually ended up being a specialized information service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Prelude Co Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be utilized 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
Prelude Co Case Study Solution has particular strengths that can be utilized to lower the threats, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Prelude Co Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase constraints for the business in executing its development program. The weak points of Prelude Co Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, 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 must propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining given that 2008, impacting Prelude Co Case Study Help as well, but the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has positioned specific threats to Prelude Co Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Prelude Co Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market along with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be determined. The total financial performance of the business could be analyzed by using the charts provided in the case Appendices. It could be examined from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Prelude Co Case Study Solution is growing and the business is quite effective in drawing in a large number of customers at a potential cost.
Together with it, the 2nd chart which shows the yearly development in the Prelude Co Case Study Analysis total properties, shows that the company is rather efficient in adding value to its assets through its earnings. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the circulation of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state 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 Celebration of China. Therefore, it might be said that the general political forces impacting Prelude Co Case Study Analysis business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Prelude Co Case Study Analysis includes the issues of ecological neighborhoods 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 must not be harmful for the environment.
Legal.
Legal policies 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 initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the files provided in the virtual libraries on certain websites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
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 rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Prelude Co Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Prelude Co Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sections, with a major concentrate on academic publications. CIP functions 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 could wean the marketplace share of Prelude Co Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Prelude Co Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant service to avoid the decreasing market growth. The business could likewise 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 ought to first collects the information connected to the consumer demand, the possible markets, the government guidelines and the information related to the rivals provided in the market. After that, the company should decide one potential segment for its preliminary offering. It ought to collect research study that how it might distinguish its digital publishing from the existing competitors' products. After all the actions above the business ought to opt for the preliminary offering. The business needs to go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a risk to the company's long term existence, however the scenario can be managed by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
