Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution and Analysis
Introduction
Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing info and interaction services. Significant business sections of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items include books, regulars, online media, exhibitions, research reports and so on. Ransom On The High Seas The Case Of Piracy In Somalia Case Study Analysis has become a specialized information company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the brand-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 improvement of the macro markets have raised several 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 made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ransom On The High Seas The Case Of Piracy In Somalia Case Study Help has certain strengths that can be utilized to reduce the dangers, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Ransom On The High Seas The Case Of Piracy In Somalia Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position allows the business to think about several advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its development program. The weak points of Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution as well, but the growth might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually presented particular threats to Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Ransom On The High Seas The Case Of Piracy In Somalia Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. Nevertheless, the general monetary performance of the business could be analyzed by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Ransom On The High Seas The Case Of Piracy In Somalia Case Study Help is growing and the business is rather efficient in attracting a large number of customers at a possible cost.
In addition to it, the second graph which shows the yearly development in the Ransom On The High Seas The Case Of Piracy In Somalia Case Study Help total properties, reveals that the business is quite effective in including worth to its possessions through its profits. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the given data could be the analysis concerning the distribution of overall earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative products etc. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Ransom On The High Seas The Case Of Piracy In Somalia Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence 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. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Ransom On The High Seas The Case Of Piracy In Somalia Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sections, with a significant focus on educational publications. CIP acts as a threat 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 Ransom On The High Seas The Case Of Piracy In Somalia Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Ransom On The High Seas The Case Of Piracy In Somalia Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact 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 customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an immediate option to avoid the decreasing industry development. Intro of digital publishing could show to be an instant option with low amount of threat for the business. However, the business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the data related to the customer need, the prospective markets, the government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a threat to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
