Ravens Sun Enterprise Ltd 2 Case Study Solution and Analysis
Intro
Ravens Sun Enterprise Ltd 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Ravens Sun Enterprise Ltd 2 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ravens Sun Enterprise Ltd 2 Case Study Analysis has particular strengths that can be used to lower the threats, conquer 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 industry i.e. 60 years allows the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong monetary position enables the company to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in executing its development program. The weaknesses of Ravens Sun Enterprise Ltd 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting Ravens Sun Enterprise Ltd 2 Case Study Analysis as well, however the development could be revived by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured certain dangers to Ravens Sun Enterprise Ltd 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might 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 competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual total revenues of Ravens Sun Enterprise Ltd 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in attracting a big number of customers at a potential price.
Along with it, the 2nd chart which reveals the annual development in the Ravens Sun Enterprise Ltd 2 Case Study Analysis overall possessions, reveals that the company is rather efficient in adding value to its possessions through its incomes. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis relating to the circulation of total profits of the company. Huge part of the revenues 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 segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the recent patterns 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 might have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be stated that the general political forces impacting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out informative materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Ravens Sun Enterprise Ltd 2 Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Ravens Sun Enterprise Ltd 2 Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning 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 Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Ravens Sun Enterprise Ltd 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence 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 Ravens Sun Enterprise Ltd 2 Case Study Help consist of;.
• Chemical Industry 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Ravens Sun Enterprise Ltd 2 Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate service to avoid the decreasing industry development. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the customer demand, the prospective markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a threat to the company's long term existence, but the circumstance can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
