Procast Inc Assignment Case Study Solution and Analysis
Procast Inc Assignment Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing information and communication services. Significant service segments of the business include; books, regulars, consultancy and circulation. The business has a large item portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. Procast Inc Assignment Case Study Help has become a specialized details service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and Procast Inc Assignment Case Study Solution in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change 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 abilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Procast Inc Assignment Case Study Help has certain strengths that can be utilized to reduce the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Procast Inc Assignment Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position permits the business to think about numerous advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its development program. The weak points of Procast Inc Assignment Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional 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 expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
The development of the publishing market is declining given that 2008, affecting Procast Inc Assignment Case Study Help as well, however the growth could be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned certain dangers to Procast Inc Assignment Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Procast Inc Assignment Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the client base.
The company has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be calculated. The overall monetary efficiency of the business could be examined by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Procast Inc Assignment Case Study Solution is growing and the business is rather effective in bring in a large number of clients at a prospective rate.
In addition to it, the second graph which shows the yearly development in the Procast Inc Assignment Case Study Solution overall properties, shows that the company is rather effective in including worth to its assets through its revenues. The development in assets reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis concerning the distribution of overall revenues of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a potential growth to accomplish its future advancement objective.
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Procast Inc Assignment Case Study Solution organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Procast Inc Assignment Case Study Analysis includes the concerns of environmental communities 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 ought to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines 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 Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Procast Inc Assignment Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Procast Inc Assignment Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 could wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining market growth. The company could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially collects the data related to the consumer need, the possible markets, the government guidelines and the information associated with the competitors provided in the market. After that, the business should decide one possible segment for its initial offering. It must collect research study that how it might distinguish its digital publishing from the existing rivals' products. The actions above the company ought to go for the preliminary offering. If the initial offering shows a success, the business should opt for the other markets. In this way the company would have the ability to implement its digital publishing program.
The growth of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, however the situation can be managed by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.