Research Proposal 4 Case Study Solution and Analysis
Research Proposal 4 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and Research Proposal 4 Case Study Solution in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement 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 important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Research Proposal 4 Case Study Analysis has specific strengths that can be made use of to minimize the risks, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Research Proposal 4 Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position allows the business to consider several development chances with no fear of raising fund externally.
In addition to the strengths, the company has particular weak points which might increase restraints for the company in executing its development program. The weak points of Research Proposal 4 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining because 2008, affecting Research Proposal 4 Case Study Solution as well, but the development might be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has presented particular hazards to Research Proposal 4 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Research Proposal 4 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the client base.
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. The general monetary performance of the company might be analyzed by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Research Proposal 4 Case Study Help is growing and the business is quite efficient in drawing in a large number of customers at a possible cost.
Together with it, the 2nd graph which shows the yearly growth in the Research Proposal 4 Case Study Help total possessions, shows that the business is quite efficient in adding value to its assets through its incomes. The development in possessions reveals that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the distribution of overall revenues of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a prospective development to attain its future advancement goal.
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Research Proposal 4 Case Study Solution service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products and so on. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Research Proposal 4 Case Study Help. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces affecting Research Proposal 4 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the danger of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on 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 major providers of the Research Proposal 4 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Research Proposal 4 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining market growth. The business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business needs to first collects the data associated with the consumer demand, the possible markets, the federal government regulations and the information related to the competitors provided in the market. After that, the company needs to choose one potential sector for its initial offering. It should gather research that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business ought to go for the initial offering. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the company would have the ability to implement its digital publishing program.
The growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.