Race To The South Pole Case Study Solution and Analysis
Intro
Race To The South Pole Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing details and interaction services. Significant business segments of the company include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its major items consist of books, periodicals, online media, exhibits, research reports and so on. Race To The South Pole Case Study Analysis has actually become a specialized details service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and Race To The South Pole Case Study Help in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of 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
Race To The South Pole Case Study Solution has certain strengths that can be utilized to lower the threats, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Race To The South Pole Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position enables the business to think about numerous development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Race To The South Pole Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Race To The South Pole Case Study Help as well, however the growth could be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually presented specific risks to Race To The South Pole Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Race To The South Pole Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals 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 using certain strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the annual overall profits of Race To The South Pole Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is rather efficient in drawing in a large number of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the yearly growth in the Race To The South Pole Case Study Solution total possessions, shows that the business is rather efficient in adding value to its assets through its earnings. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the distribution of total incomes of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting Race To The South Pole Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Race To The South Pole Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative products etc. China has the highest population worldwide with a high population growth, showing the increasing variety of consumers of the Race To The South Pole Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Race To The South Pole Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market 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 major suppliers of the Race To The South Pole Case Study Help include the suppliers of the paper for publishing 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 Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence 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 operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Race To The South Pole Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in various market sectors, with a significant focus on instructional publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Race To The South Pole Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Race To The South Pole Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate service to prevent the declining industry growth. Intro of digital publishing could prove to be an immediate service with low amount of risk for the business. However, the business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to initially gathers the information related to the consumer need, the prospective markets, the government policies and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a hazard to the company's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
