Problem Solution Case Study Solution and Analysis
Problem Solution Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Problem Solution Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Problem Solution Case Study Solution has particular strengths that can be used to reduce the dangers, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Problem Solution Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position allows the company to consider numerous advancement opportunities with no worry of raising fund externally.
Together with the strengths, the business has certain weak points which could increase restraints for the business in executing its advancement program. The weak points of Problem Solution Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, 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 certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is decreasing since 2008, affecting Problem Solution Case Study Solution as well, however the growth might be restored by availing specific chances provided in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competitors in the publishing market has posed specific dangers to Problem Solution Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Problem Solution Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the danger of losing the customer base.
Due to lack of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly total revenues of Problem Solution Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in attracting a large number of customers at a potential cost.
In addition to it, the 2nd chart which shows the yearly development in the Problem Solution Case Study Help overall possessions, reveals that the business is rather effective in adding value to its assets through its earnings. The development in assets shows that the total worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis concerning the distribution of total profits of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a prospective development to accomplish its future development objective.
PESTEL analysis could be performed to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Problem Solution Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing might decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental forces affecting Problem Solution Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
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 Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Problem Solution Case Study Help include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Problem Solution Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Problem Solution Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate service to avoid the declining industry development. Introduction of digital publishing might show to be an instant option with low amount of danger for the business. The business could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the customer need, the potential markets, the federal government guidelines and the data connected to the competitors provided in the market. After that, the business should choose one potential segment for its preliminary offering. It should collect research study that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the business ought to choose the preliminary offering. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining because 2008, showing a danger to the business's long term presence, however the scenario can be controlled by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.