Procast Inc Assignment Case Study Solution and Analysis
Introduction
Procast Inc Assignment Case Study Help 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 company and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Procast Inc Assignment Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Procast Inc Assignment Case Study Analysis has certain strengths that can be utilized to reduce the dangers, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Procast Inc Assignment Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the company to consider several advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase constraints for the business in implementing its development program. The weaknesses of Procast Inc Assignment Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining considering that 2008, affecting Procast Inc Assignment Case Study Solution as well, however the growth could be revived by availing certain chances 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 client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has presented particular risks to Procast Inc Assignment Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Procast Inc Assignment Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors 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 utilizing certain methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be computed. The overall financial efficiency of the company could be analyzed by using the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Procast Inc Assignment Case Study Analysis is growing and the business is quite effective in attracting a large number of customers at a prospective price.
Along with it, the second chart which reveals the yearly development in the Procast Inc Assignment Case Study Analysis overall assets, shows that the business is quite effective in adding worth to its possessions through its incomes. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the circulation of overall incomes of the company. Major part of the incomes 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 business sectors with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Procast Inc Assignment Case Study Help organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Procast Inc Assignment Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the general company at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products etc. China has the highest population in the world with a high population development, showing the increasing variety of customers of the Procast Inc Assignment Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Procast Inc Assignment Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Procast Inc Assignment Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Procast Inc Assignment Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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).
It was likewise established in the very same duration as Procast Inc Assignment Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the decreasing industry development. For that reason, introduction of digital publishing could prove to be an immediate option with low amount of risk for the company. Nevertheless, the company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially gathers the information related to the customer demand, the prospective markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the business's long term existence, however the scenario can be managed by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
