Progressive Corporation Case Study Solution and Analysis
Introduction
Progressive Corporation Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing details and interaction services. Major business segments of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its major products consist of books, regulars, online media, exhibits, research study reports and so on. Progressive Corporation Case Study Solution has actually become a specialized info provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Progressive Corporation Case Study Solution in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of concerns 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 company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Progressive Corporation Case Study Solution has specific strengths that can be utilized to decrease the dangers, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Progressive Corporation Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the company to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase constraints for the company in implementing its development program. The weak points of Progressive Corporation Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing because 2008, affecting Progressive Corporation Case Study Help as well, however the development might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has presented particular threats to Progressive Corporation Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Progressive Corporation Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the danger of losing the client base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. Nevertheless, the overall financial performance of the business could be examined by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Progressive Corporation Case Study Help is growing and the company is quite efficient in bring in a a great deal of consumers at a prospective price.
Along with it, the second graph which shows the yearly growth in the Progressive Corporation Case Study Solution total assets, reveals that the company is rather effective in including value to its possessions through its revenues. The growth in assets shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the distribution of overall incomes of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the performance of the business and the current trends in the external environment of the company. A brief 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 directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Progressive Corporation Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Progressive Corporation Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies related to the import of books impact the general organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful materials and so on. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Progressive Corporation Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Progressive Corporation Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations 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 approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Progressive Corporation Case Study Analysis consist of 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 provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Progressive Corporation Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Progressive Corporation Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the company require an instant service to avoid the decreasing market development. For that reason, introduction of digital publishing might prove to be an immediate solution with low quantity of threat for the company. Nevertheless, the company might likewise 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 ought to first gathers the data related to the customer demand, the prospective markets, the government policies and the information associated with the competitors presented in the market. After that, the business must choose one possible segment for its initial offering. It must collect research study that how it could separate its digital publishing from the existing competitors' products. The actions above the company must go for the initial offering. If the preliminary offering shows a success, the company must choose the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a risk to the business's long term existence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business might 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 brand-new markets.
