Risk Assessment 2 Case Study Solution and Analysis
Introduction
Risk Assessment 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing details and communication services. Significant service segments of the company include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its significant products include books, regulars, online media, exhibitions, research study reports and so on. Risk Assessment 2 Case Study Help has become a specialized details provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Risk Assessment 2 Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing market in general and CMP in specific. These elements include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 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
Risk Assessment 2 Case Study Help has particular strengths that can be made use of to minimize the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Risk Assessment 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the company to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restraints for the company in executing its development program. The weak points of Risk Assessment 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, 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 development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining because 2008, impacting Risk Assessment 2 Case Study Solution as well, however the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has posed certain risks to Risk Assessment 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Risk Assessment 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual total revenues of Risk Assessment 2 Case Study Solution throughout the duration 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 bring in a big number of clients at a possible price.
In addition to it, the 2nd graph which shows the annual growth in the Risk Assessment 2 Case Study Analysis overall assets, shows that the business is quite effective in adding worth to its properties through its earnings. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the distribution of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Risk Assessment 2 Case Study Analysis organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Risk Assessment 2 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 needed to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market 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 rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Risk Assessment 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly 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. Major rivals of Risk Assessment 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in numerous market segments, with a major concentrate on educational publications. CIP functions 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 might wean the market share of Risk Assessment 2 Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Risk Assessment 2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
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 attain its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry growth. Introduction of digital publishing might prove to be an immediate service with low quantity of danger for the business. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should initially collects the data related to the consumer demand, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a risk to the business's long term presence, however the situation can be controlled by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
