Rockwater Insurance 2 Case Study Solution and Analysis
Rockwater Insurance 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing information and communication services. Significant service sections of the company include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports etc. Rockwater Insurance 2 Case Study Help has become a specialized information supplier and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Rockwater Insurance 2 Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised several questions 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 business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Rockwater Insurance 2 Case Study Analysis has specific strengths that can be used to reduce the threats, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Rockwater Insurance 2 Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong monetary position permits the business to consider a number of advancement chances with no fear of raising fund externally.
Along with the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of Rockwater Insurance 2 Case Study Analysis are given 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 growth. It must propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing market is declining because 2008, impacting Rockwater Insurance 2 Case Study Solution as well, but the development might be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing market has postured particular dangers to Rockwater Insurance 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Rockwater Insurance 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competition increases the threat of losing the consumer base.
Due to absence of data, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual overall incomes of Rockwater Insurance 2 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a big number of consumers at a possible cost.
Together with it, the second chart which reveals the annual growth in the Rockwater Insurance 2 Case Study Analysis overall assets, reveals that the business is quite efficient in including value to its properties through its revenues. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis concerning the distribution of overall revenues of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a potential development to attain its future advancement objective.
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting Rockwater Insurance 2 Case Study Analysis service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful materials and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Rockwater Insurance 2 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Rockwater Insurance 2 Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model 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.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Rockwater Insurance 2 Case Study Solution consist of the providers of the paper for publishing documents. 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 Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
CMP runs in a highly competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Rockwater Insurance 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in various market sections, with a major concentrate on educational publications. 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 might wean the market share of Rockwater Insurance 2 Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an instant service to prevent the declining industry growth. Introduction of digital publishing might show to be an immediate option with low amount of threat for the business. However, the business could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must first collects the information associated with the customer demand, the potential markets, the government policies and the data related to the competitors provided in the market. After that, the business ought to choose one potential sector for its preliminary offering. It should collect research that how it could distinguish its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. If the initial offering proves a success, the company must go for the other markets. In this method the company would have the ability to execute its digital publishing program.
The development of the publishing industry is declining considering that 2008, revealing a danger to the company's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.