Redefine Real Estate Case Study Solution and Analysis
Redefine Real Estate Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and Redefine Real Estate Case Study Solution in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Redefine Real Estate Case Study Solution has specific strengths that can be utilized to lower the dangers, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Redefine Real Estate Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the company to consider several development opportunities with no fear of raising fund externally.
Along with the strengths, the company has certain weak points which could increase restraints for the company in executing its advancement program. The weak points of Redefine Real Estate Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, 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 ought to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing because 2008, impacting Redefine Real Estate Case Study Solution as well, but the growth might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured particular threats to Redefine Real Estate Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Redefine Real Estate Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the hazard of losing the customer base.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be determined. However, the overall monetary efficiency of the company could be analyzed by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Redefine Real Estate Case Study Solution is growing and the business is quite efficient in bring in a large number of consumers at a possible cost.
Along with it, the 2nd chart which shows the yearly growth in the Redefine Real Estate Case Study Help total assets, shows that the company is quite effective in including value to its properties through its profits. The development in properties shows that the overall value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a prospective development to accomplish its future development goal.
PESTEL analysis could be conducted to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Redefine Real Estate Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies related to the import of books affect the overall organisation at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading useful products and so on. China has the greatest population in the world with a high population development, showing the increasing number of consumers of the Redefine Real Estate Case Study Analysis. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces impacting Redefine Real Estate 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 disposable and the ink used while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Redefine Real Estate Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the purchasers requires high quality files at competitive costs.
CMP operates in a highly competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Redefine Real Estate Case Study Analysis include;.
• 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Redefine Real Estate Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its products in the market.
As the preferences are moving towards digital publishing and the company require an immediate service to avoid the declining market growth. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the data related to the customer need, the possible markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, showing a danger to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.