Research On Colombia Case Study Solution and Analysis
Research On Colombia Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information company and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Research On Colombia Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important 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?
Research On Colombia Case Study Solution has specific strengths that can be made use of to decrease the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Research On Colombia Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position allows the company to consider several advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Research On Colombia Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is decreasing since 2008, affecting Research On Colombia Case Study Help too, however the growth could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented specific dangers to Research On Colombia Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Research On Colombia Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular techniques like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry together with existence of high competition increases the risk of losing the customer base.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The total financial performance of the company could be analyzed by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Research On Colombia Case Study Analysis is growing and the company is quite efficient in attracting a large number of consumers at a prospective rate.
Together with it, the second graph which reveals the yearly growth in the Research On Colombia Case Study Help overall properties, reveals that the company is rather effective in including worth to its assets through its earnings. The development in possessions shows that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis regarding the distribution of total earnings of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a possible growth to attain its future advancement objective.
PESTEL analysis could be performed to learn the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting Research On Colombia Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Research On Colombia Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies connected to the import of books impact the overall organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out informative products etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Research On Colombia Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Research On Colombia Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Research On Colombia Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 buyers requires high quality documents at competitive rates.
CMP runs in a highly competitive industry with the presence 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. Major competitors of Research On Colombia 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 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).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the declining market development. For that reason, intro of digital publishing might prove to be an immediate option with low amount of danger for the company. However, the business might likewise think about the growth 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 associated with the consumer need, the possible markets, the government policies and the information connected to the competitors provided in the market. After that, the company must decide one possible sector for its preliminary offering. It should collect research that how it could differentiate its digital publishing from the existing rivals' products. The actions above the company need to go for the initial offering. If the initial offering shows a success, the company ought to opt for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing market is declining given that 2008, revealing a risk to the company's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.