Risk Assessment Case Study Solution and Analysis
Introduction
Risk Assessment Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing details and communication services. Major company segments of the business include; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products consist of books, regulars, online media, exhibits, research study reports and so on. Risk Assessment Case Study Analysis has become a specialized details supplier and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Risk Assessment Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Risk Assessment Case Study Solution has specific strengths that can be utilized to decrease the risks, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Risk Assessment Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the business to think about several advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Risk Assessment Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Risk Assessment Case Study Analysis also, but the development could be revived by availing particular chances provided in the market. The marketplace chances for CMP include;
• The company might also introduce 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 growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually postured particular dangers to Risk Assessment Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Risk Assessment Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly total revenues of Risk Assessment Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is rather efficient in bring in a large number of customers at a potential price.
Together with it, the 2nd chart which shows the annual growth in the Risk Assessment Case Study Solution total possessions, reveals that the company is rather efficient in including worth to its properties through its earnings. The development in properties shows that the total worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis concerning the circulation of overall revenues of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the current patterns 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 could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful materials etc. China has the greatest population in the world with a high population development, revealing the increasing number of consumers of the Risk Assessment Case Study Analysis. However, the customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Risk Assessment Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized 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. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Risk Assessment Case Study Solution consist of the suppliers of the paper for releasing documents. 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.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Risk Assessment Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate service to prevent the declining market growth. Introduction of digital publishing could prove to be an instant service with low amount of threat for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially collects the data related to the customer need, the prospective markets, the federal government regulations and the information associated with the rivals provided in the market. After that, the business needs to decide one possible sector for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the business ought to opt for the initial offering. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a danger to the company's long term existence, however the situation can be controlled by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
