Project Management 8 Case Study Solution and Analysis
Introduction
Project Management 8 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in basic and Project Management 8 Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction 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 valuable experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Project Management 8 Case Study Solution has specific strengths that can be utilized to decrease the dangers, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Project Management 8 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong monetary position permits the business to think about a number of development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Project Management 8 Case Study Solution 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 development. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting Project Management 8 Case Study Help too, however the growth could be restored by availing particular chances presented in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has positioned certain threats to Project Management 8 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Project Management 8 Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. The general financial efficiency of the company might be evaluated by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Project Management 8 Case Study Help is growing and the company is quite efficient in attracting a a great deal of consumers at a potential cost.
Together with it, the 2nd graph which reveals the yearly development in the Project Management 8 Case Study Help overall possessions, shows that the business is rather effective in adding worth to its assets through its profits. The growth in assets reveals that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the offered information might be the analysis concerning the distribution of total profits of the company. Huge 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 could move towards other organisation segments with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP organisation 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 basic and the Project Management 8 Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total organisation at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative products etc. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Project Management 8 Case Study Solution. However, the consumer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Project Management 8 Case Study Analysis consists of the issues of environmental neighborhoods 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 needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the released documents is the files provided in the digital libraries on particular sites. The altering customer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market 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. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Project Management 8 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Project Management 8 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Project Management 8 Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate 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 products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant solution to prevent the declining industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer demand, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the business ought to 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 market is declining considering that 2008, revealing a danger to the company's long term presence, however the situation can be managed by considering 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 risk of failure for entrance in the brand-new markets.
