Research Methods Case Study Solution and Analysis
Intro
Research Methods Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Research Methods Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be used 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
Research Methods Case Study Solution has certain strengths that can be made use of to reduce the threats, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Research Methods Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position enables the business to think about a number of development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase restrictions for the business in executing its development program. The weak points of Research Methods Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, impacting Research Methods Case Study Help too, but the development might be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has postured specific dangers to Research Methods Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Research Methods Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be calculated. The overall financial performance of the business might be examined by utilizing the charts offered in the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Research Methods Case Study Solution is growing and the business is quite effective in attracting a large number of customers at a potential price.
In addition to it, the 2nd graph which reveals the yearly growth in the Research Methods Case Study Solution total assets, shows that the company is quite efficient in including value to its assets through its revenues. The development in assets reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the given information could be the analysis concerning the circulation of total incomes of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out helpful materials etc. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Research Methods Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Research Methods Case Study Analysis consists of the issues of ecological 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 utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition 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 rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Research Methods Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Research Methods Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an immediate option to prevent the declining industry growth. Intro of digital publishing could show to be an immediate option with low quantity of danger for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the information connected to the customer need, the potential markets, the government regulations and the information connected to the rivals provided in the market. After that, the business ought to choose one potential sector for its initial offering. It must collect research that how it could differentiate its digital publishing from the existing competitors' products. The actions above the business ought to go for the initial offering. If the initial offering shows a success, the business ought to opt for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
