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Prime Micro Inc Case Study Solution and Analysis


Intro

Prime Micro Inc Case Study Solution 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 details provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Vital Issues

Although, Prime Micro Inc Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These aspects consist of;

• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
Executive Summary
The improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Prime Micro Inc Case Study Help has particular strengths that can be utilized to reduce the dangers, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;

• The long term experience of Prime Micro Inc Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong monetary position enables the business to consider numerous advancement opportunities without any fear of raising fund externally.

Weak points

Together with the strengths, the company has specific weak points which might increase constraints for the business in executing its advancement program. The weaknesses of Prime Micro Inc Case Study Help are given as follows;

• Despite of being a science and technology publishing firm, the company still has conventional 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 particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing industry is declining considering that 2008, affecting Prime Micro Inc Case Study Help as well, but the growth might be revived by availing specific chances presented 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 acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.

Dangers

The altering macro trends in the market and increasing competitors in the publishing industry has actually postured specific threats to Prime Micro Inc Case Study Help including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Prime Micro Inc Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market together with presence of high competitors increases the danger of losing the customer base.

Financial Analysis.
Swot Analysis
Due to absence of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly total incomes of Prime Micro Inc Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in drawing in a large number of customers at a prospective cost.

Along with it, the second chart which shows the annual growth in the Prime Micro Inc Case Study Solution total assets, reveals that the business is rather efficient in including worth to its properties through its revenues. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).

Another financial analysis of the business using the given information might be the analysis regarding the circulation of overall profits of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a prospective growth to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis might be conducted to find out the numerous external forces impacting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Prime Micro Inc Case Study Solution service are high. The government policies concerning the publishing sector are also increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.

Social and Demographical.

The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.

Technological.

Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Prime Micro Inc Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be harmful for the environment.

Legal.

Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.

Industry Analysis (Porter's 5 Forces Model).

Porter's 5 Forces Model might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.

Threat of New Entrants.

Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.

Danger of Substitution.

Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the risk of replacement for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.

Bargaining Power of Provider.

The major providers of the Prime Micro Inc Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.

Rivals Analysis.

CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Prime Micro Inc Case Study Solution include;.

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

Chemical Market Press (CIP).

CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in various market sectors, with a major concentrate on educational publications. CIP acts as a danger 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 marketplace share of Prime Micro Inc Case Study Help easily in the current market situation.

Posts and telecommunication Press (PTP).

It was also founded in the exact same period as Prime Micro Inc Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.

Cons

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

Suggestions

As the preferences are shifting towards digital publishing and the company need an instant service to prevent the decreasing industry development. The company could also consider the growth program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the consumer demand, the potential markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.

Conclusion

The growth of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.

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