Risk Management At Apache 2 Case Study Solution and Analysis
Introduction
Risk Management At Apache 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Risk Management At Apache 2 Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement 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 abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Risk Management At Apache 2 Case Study Solution has specific strengths that can be utilized to minimize the risks, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Risk Management At Apache 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position permits the business to consider several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase restrictions for the company in executing its development program. The weaknesses of Risk Management At Apache 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting Risk Management At Apache 2 Case Study Analysis also, but the development could be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned certain hazards to Risk Management At Apache 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Risk Management At Apache 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be determined. Nevertheless, the overall financial performance of the business could be evaluated by using the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Risk Management At Apache 2 Case Study Help is growing and the business is quite effective in bring in a large number of customers at a prospective rate.
In addition to it, the second graph which reveals the annual development in the Risk Management At Apache 2 Case Study Solution total properties, shows that the company is rather efficient in adding value to its assets through its incomes. The development in properties shows that the total worth of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of total profits of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Risk Management At Apache 2 Case Study Solution company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Risk Management At Apache 2 Case Study Analysis in specific includesthe prices of paper, the income 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. Along with it, the economic policies associated with the import of books impact the general service at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative products etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Risk Management At Apache 2 Case Study Help. The customer preferences are moving 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 advancement in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Risk Management At Apache 2 Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled 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 participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files presented in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry 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. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Risk Management At Apache 2 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Risk Management At Apache 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in various market sectors, with a significant concentrate on academic publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Risk Management At Apache 2 Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business 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 industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an immediate option to avoid the decreasing market development. Therefore, intro of digital publishing could show to be an immediate service with low amount of danger for the company. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business needs to initially gathers the data connected to the customer need, the potential markets, the federal government guidelines and the information connected to the competitors presented in the market. After that, the business must choose one possible sector for its initial offering. It needs to collect research study that how it could differentiate its digital publishing from the existing rivals' products. The steps above the company need to go for the initial offering. The business ought to go for the other markets if the initial offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a risk to the company's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
