Ravens Sun Enterprise Ltd 2 Case Study Solution and Analysis
Ravens Sun Enterprise Ltd 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and Ravens Sun Enterprise Ltd 2 Case Study Solution in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several questions 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Ravens Sun Enterprise Ltd 2 Case Study Solution has certain strengths that can be used to decrease the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ravens Sun Enterprise Ltd 2 Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position allows the business to think about several development opportunities without any fear of raising fund externally.
Along with the strengths, the company has certain weak points which might increase constraints for the business in implementing its development program. The weak points of Ravens Sun Enterprise Ltd 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
The growth of the publishing market is decreasing since 2008, affecting Ravens Sun Enterprise Ltd 2 Case Study Solution as well, however the growth could be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured particular dangers to Ravens Sun Enterprise Ltd 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Ravens Sun Enterprise Ltd 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the risk of losing the customer base.
Due to lack of data, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly overall profits of Ravens Sun Enterprise Ltd 2 Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a big number of consumers at a potential rate.
Along with it, the 2nd chart which reveals the annual growth in the Ravens Sun Enterprise Ltd 2 Case Study Solution overall properties, reveals that the company is quite efficient in adding value to its possessions through its revenues. The development in assets shows that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis regarding the circulation of total profits of the business. Major part of the profits 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 sectors with a prospective growth to accomplish its future development goal.
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Ravens Sun Enterprise Ltd 2 Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents provided in the digital libraries on specific sites. The altering consumer choices towards digital knowing increase the hazard of substitution for the market.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Ravens Sun Enterprise Ltd 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Ravens Sun Enterprise Ltd 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market sections, with a significant concentrate on instructional publications. CIP acts as a hazard 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 Ravens Sun Enterprise Ltd 2 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate option to prevent the decreasing industry growth. Introduction of digital publishing might show to be an immediate service with low amount of danger for the company. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business needs to initially collects the information related to the consumer need, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing considering that 2008, revealing a threat to the business's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.