Progressive Corporation Case Study Solution and Analysis
Progressive Corporation Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Progressive Corporation Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Progressive Corporation Case Study Analysis has specific strengths that can be utilized to minimize the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Progressive Corporation Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position permits the business to consider a number of advancement chances with no worry of raising fund externally.
Along with the strengths, the business has certain weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Progressive Corporation Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is declining because 2008, impacting Progressive Corporation Case Study Help also, however the growth might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed particular dangers to Progressive Corporation Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Progressive Corporation Case Study Analysis 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 get a strong consumer base by utilizing specific strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the danger of losing the customer base.
The business has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. The total financial performance of the company could be examined by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Progressive Corporation Case Study Help is growing and the business is rather efficient in bring in a a great deal of clients at a possible price.
In addition to it, the second graph which shows the yearly development in the Progressive Corporation Case Study Solution overall possessions, reveals that the business is quite effective in adding value to its possessions through its profits. The development in possessions shows that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis regarding the distribution of total revenues of the company. Major part of the incomes 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 company segments with a prospective growth to achieve its future development goal.
PESTEL analysis could be conducted to find out the different external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative materials and so on. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Progressive Corporation Case Study Help. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Progressive Corporation Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 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 Five Forces Design could be used to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the danger of substitution for the industry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Progressive Corporation Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
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. Major competitors of Progressive Corporation Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in different market sectors, with a major concentrate on academic publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Progressive Corporation Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the company need an instant service to avoid the decreasing market development. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially collects the data related to the consumer demand, the potential markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing market is decreasing given that 2008, showing a hazard to the business's long term existence, but the situation can be controlled by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.