Problem Solution Case Study Solution and Analysis
Problem Solution 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 information company and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and Problem Solution Case Study Analysis in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Problem Solution Case Study Analysis has particular strengths that can be utilized to lower the hazards, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Problem Solution Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider numerous advancement opportunities with no fear of raising fund externally.
Together with the strengths, the company has certain weak points which could increase restrictions for the business in executing its advancement program. The weak points of Problem Solution Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, 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 should propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is declining since 2008, affecting Problem Solution Case Study Solution as well, however the growth might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Problem Solution Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Problem Solution Case Study Solution due to the consumer shift towards digital libraries.
• The existence 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 customer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the danger of losing the client base.
The company has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be computed. Nevertheless, the total financial efficiency of the company could be analyzed by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Problem Solution Case Study Analysis is growing and the company is rather effective in attracting a large number of clients at a prospective cost.
In addition to it, the second graph which reveals the yearly development in the Problem Solution Case Study Help overall properties, reveals that the business is quite effective in including value to its properties through its incomes. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis relating to the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential growth to attain its future development goal.
PESTEL analysis might be performed to learn the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Problem Solution Case Study Solution service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Problem Solution Case Study Analysis consists of the concerns of ecological communities over the usage 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 should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved 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.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the virtual libraries on particular sites. The changing consumer choices towards digital learning increase the danger of substitution for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Problem Solution Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Problem Solution Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant service to prevent the declining market development. Introduction of digital publishing might show to be an instant option with low amount of risk for the company. The company might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially gathers the information related to the consumer need, the possible markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
The development of the publishing industry is decreasing because 2008, revealing a hazard to the business's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.