Quality Furniture Company Case Study Solution and Analysis
Introduction
Quality Furniture Company Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Quality Furniture Company Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing market in general and CMP in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Quality Furniture Company Case Study Solution has particular strengths that can be made use of to reduce the threats, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Quality Furniture Company Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the company to think about several advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Quality Furniture Company Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Quality Furniture Company Case Study Solution also, however the development might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has presented certain hazards to Quality Furniture Company Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Quality Furniture Company Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be computed. The general monetary performance of the company might be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Quality Furniture Company Case Study Solution is growing and the company is rather efficient in bring in a large number of clients at a potential rate.
Together with it, the second graph which shows the yearly growth in the Quality Furniture Company Case Study Solution overall assets, reveals that the business is rather efficient in adding value to its possessions through its earnings. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis concerning the circulation of total earnings 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 might move towards other service sections with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Quality Furniture Company Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the total organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Quality Furniture Company Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized 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 guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the digital libraries on certain websites. The changing customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number 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 market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Quality Furniture Company Case Study Solution include the providers of the paper for releasing 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 Buyer.
Bargaining power of purchaser 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 purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Quality Furniture Company Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a significant concentrate on educational publications. CIP serves 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 Quality Furniture Company Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 service sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the declining market growth. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the data connected to the consumer need, the possible markets, the federal government guidelines and the information associated with the rivals presented in the market. After that, the business must choose one possible sector for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing rivals' items. The steps above the company must go for the preliminary offering. If the initial offering proves a success, the company needs to opt for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
