Real Estate Development Of Off Campus Student Housing Case Study Solution and Analysis
Introduction
Real Estate Development Of Off Campus Student Housing Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and Real Estate Development Of Off Campus Student Housing Case Study Help in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company 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
Real Estate Development Of Off Campus Student Housing Case Study Solution has certain strengths that can be used to lower the risks, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Real Estate Development Of Off Campus Student Housing Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position enables the company to consider a number of development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Real Estate Development Of Off Campus Student Housing Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting Real Estate Development Of Off Campus Student Housing Case Study Help too, but the growth could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has posed specific threats to Real Estate Development Of Off Campus Student Housing Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Real Estate Development Of Off Campus Student Housing Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be calculated. The total financial efficiency of the company could be examined by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Real Estate Development Of Off Campus Student Housing Case Study Help is growing and the company is rather effective in bring in a a great deal of consumers at a possible cost.
In addition to it, the second chart which reveals the yearly development in the Real Estate Development Of Off Campus Student Housing Case Study Analysis total assets, reveals that the company is quite effective in including worth to its possessions through its incomes. The development in possessions shows that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis relating to the circulation of total revenues of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Real Estate Development Of Off Campus Student Housing Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. Together with it, the financial policies related to the import of books impact the general organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Real Estate Development Of Off Campus Student Housing Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Real Estate Development Of Off Campus Student Housing Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely 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 rivals of Real Estate Development Of Off Campus Student Housing Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Real Estate Development Of Off Campus Student Housing Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the decreasing market growth. Introduction of digital publishing could prove to be an instant service with low amount of danger for the business. The company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially collects the data related to the customer demand, the potential markets, the federal government regulations and the information connected to the competitors provided in the market. After that, the business needs to choose one prospective segment for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the company need to go for the initial offering. If the initial offering shows a success, the company needs to choose the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, revealing a hazard to the business's long term presence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
