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Prime Micro Inc Case Analysis

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Prime Micro Inc Case Study Solution and Analysis


Intro

Prime Micro Inc Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Important Problems

CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Prime Micro Inc Case Study Analysis in specific. These aspects include;

• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
Executive Summary
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the business 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 used to decrease the dangers, get rid of the weak point and get the chances. Strengths of CMP are given as follows;

• The long term experience of Prime Micro Inc Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position allows the business to think about numerous advancement chances with no worry of raising fund externally.

Weaknesses

Along with the strengths, the business has specific weaknesses which could increase restrictions 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 innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing market is declining since 2008, impacting Prime Micro Inc Case Study Solution as well, however the growth could be revived by availing specific opportunities provided in the market. The market chances for CMP include;

• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.

Risks

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

• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Prime Micro Inc Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry together with existence of high competitors increases the threat of losing the client base.

Monetary Analysis.
Swot Analysis
Due to absence of information, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly total revenues of Prime Micro Inc Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in attracting a large number of clients at a potential cost.

Along with it, the 2nd graph which reveals the yearly growth in the Prime Micro Inc Case Study Analysis overall assets, reveals that the company is rather effective in adding worth to its possessions through its earnings. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).

Another monetary analysis of the company utilizing the offered information might be the analysis relating to the circulation of overall revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a possible development to achieve its future development goal.

PESTEL Analysis

PESTEL analysis might be carried out to learn the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces impacting Prime Micro Inc Case Study Solution organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.

Affordable.

Financial forces impacting the publishing sector in basic and the Prime Micro Inc Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the general company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.

Social and Demographical.

Social and demographical forces consist of the population growth, the consumer's preferences towards checking out helpful products and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the Prime Micro Inc Case Study Solution. 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 changing customer preferences.

Technological.

Technological forces affecting the CMP consist of 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 items, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces affecting Prime Micro Inc Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's Five Forces Model).

Porter's Five Forces Model could be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.

Threat of New Entrants.

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

Danger of Replacement.

Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the hazard of alternative for the industry.

Competitive Competition.

Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant providers of the Prime Micro Inc Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.

Rivals Analysis.

CMP operates in an extremely competitive market with the presence 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 Prime Micro Inc Case Study Analysis consist of;.

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

Chemical Market Press (CIP).

CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a significant focus on academic publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Prime Micro Inc Case Study Help easily in the present market circumstance.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the prominent gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.

Cons

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

Recommendations

As the preferences are moving towards digital publishing and the business require an instant option to prevent the declining industry development. The company might also consider the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the consumer need, the prospective markets, the government regulations and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method 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 threat to the business's long term presence, but 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 avoid the danger of failure for entryway in the new markets.

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