Project Vishwamitra At Tp Engineering Corporation Case Study Solution and Analysis
Introduction
Project Vishwamitra At Tp Engineering Corporation Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and Project Vishwamitra At Tp Engineering Corporation Case Study Help in specific. These aspects include;
• Entryway of the new publishing companies 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 a number of concerns to the management at CPM that what could be the future of CMP in this situation? 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Project Vishwamitra At Tp Engineering Corporation Case Study Analysis has certain strengths that can be used to reduce the hazards, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Project Vishwamitra At Tp Engineering Corporation Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position permits the company to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Project Vishwamitra At Tp Engineering Corporation Case Study Solution are offered 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 ought to propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Project Vishwamitra At Tp Engineering Corporation Case Study Help as well, however the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has posed specific hazards to Project Vishwamitra At Tp Engineering Corporation Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Project Vishwamitra At Tp Engineering Corporation Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market together with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total earnings of Project Vishwamitra At Tp Engineering Corporation Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in bring in a big number of clients at a potential rate.
Together with it, the 2nd graph which shows the yearly growth in the Project Vishwamitra At Tp Engineering Corporation Case Study Solution overall possessions, reveals that the company is quite effective in including worth to its properties through its earnings. The growth in possessions shows that the total value of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis regarding the distribution of total profits of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Project Vishwamitra At Tp Engineering Corporation Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the files provided in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Project Vishwamitra At Tp Engineering Corporation Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Project Vishwamitra At Tp Engineering Corporation Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Project Vishwamitra At Tp Engineering Corporation Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate solution to prevent the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should initially collects the data related to the customer demand, the prospective markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the business must decide one prospective sector for its initial offering. It should collect research that how it might separate its digital publishing from the existing competitors' items. The steps above the business must go for the preliminary offering. The company must go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
