Recommendation Essay Case Study Solution and Analysis
Recommendation Essay Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details company and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and Recommendation Essay Case Study Analysis in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Recommendation Essay Case Study Solution has particular strengths that can be used to decrease the threats, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Recommendation Essay Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position allows the business to consider a number of advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Recommendation Essay Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is decreasing since 2008, affecting Recommendation Essay Case Study Analysis as well, but the development might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition 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 using its large funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has posed certain risks to Recommendation Essay Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Recommendation Essay Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry along with existence of high competition increases the risk of losing the customer base.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly overall revenues of Recommendation Essay Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a large number of clients at a possible rate.
Along with it, the second chart which reveals the yearly growth in the Recommendation Essay Case Study Analysis total properties, shows that the company is rather effective in including value to its properties through its earnings. The development in assets reveals that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the circulation of total incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a possible growth to achieve its future advancement goal.
PESTEL analysis might be conducted to learn the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Recommendation Essay Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the total service at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Recommendation Essay Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents 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 market.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Recommendation Essay Case Study Solution 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 Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Recommendation Essay Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 exact same period as Recommendation Essay Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the company require an instant solution to avoid the decreasing industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first collects the information connected to the customer demand, the prospective markets, the government regulations and the information associated with the competitors provided in the market. After that, the business ought to choose one possible section for its preliminary offering. It should gather research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the company must choose the initial offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is declining considering that 2008, revealing a threat to the business's long term existence, but the scenario can be controlled by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.