Redefine Real Estate Case Study Solution and Analysis
Introduction
Redefine Real Estate Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing information and interaction services. Significant business segments of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. Redefine Real Estate Case Study Analysis has become a specialized details provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Redefine Real Estate Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement 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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Redefine Real Estate Case Study Analysis has certain strengths that can be made use of to reduce the dangers, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Redefine Real Estate Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong monetary position enables the company to consider several development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Redefine Real Estate Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business 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 should propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Redefine Real Estate Case Study Analysis as well, but the development could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has postured particular hazards to Redefine Real Estate Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Redefine Real Estate Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry along with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall profits of Redefine Real Estate Case Study Analysis during 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 effective in attracting a big number of consumers at a prospective rate.
Along with it, the second chart which reveals the yearly development in the Redefine Real Estate Case Study Help total properties, reveals that the company is rather efficient in including value to its assets through its revenues. The growth in properties reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information could be the analysis regarding the circulation of total earnings of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Redefine Real Estate Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled 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 prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Redefine Real Estate Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly 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 Redefine Real Estate Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Redefine Real Estate Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• 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 demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an instant service to avoid the decreasing market growth. Introduction of digital publishing could prove to be an instant service with low quantity of threat for the company. However, the company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first collects the information related to the customer demand, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a threat to the company's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
