Russian Magazine Project 2018 19 Case Study Solution and Analysis
Introduction
Russian Magazine Project 2018 19 Case Study Solution is the biggest 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 big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and Russian Magazine Project 2018 19 Case Study Analysis in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Russian Magazine Project 2018 19 Case Study Analysis has certain strengths that can be used to decrease the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Russian Magazine Project 2018 19 Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the company to think about several development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase constraints for the company in implementing its development program. The weak points of Russian Magazine Project 2018 19 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Russian Magazine Project 2018 19 Case Study Analysis as well, however the development could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually posed specific hazards to Russian Magazine Project 2018 19 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Russian Magazine Project 2018 19 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be determined. However, the overall financial efficiency of the business could be analyzed by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Russian Magazine Project 2018 19 Case Study Analysis is growing and the business is quite effective in attracting a a great deal of customers at a prospective rate.
Along with it, the 2nd graph which shows the annual development in the Russian Magazine Project 2018 19 Case Study Analysis total properties, reveals that the company is rather efficient in adding value to its properties through its profits. The growth in possessions shows that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of overall incomes of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the efficiency of the company and the current trends 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 might have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Russian Magazine Project 2018 19 Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the general organisation at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Russian Magazine Project 2018 19 Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines 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 Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the virtual libraries on certain websites. The altering consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition 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, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Russian Magazine Project 2018 19 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Russian Magazine Project 2018 19 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and second in numerous market sections, with a major focus on educational publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Russian Magazine Project 2018 19 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 regards to service scale. It is also one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the declining industry development. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the data connected to the customer demand, the potential markets, the government guidelines and the data associated with the rivals provided in the market. After that, the business ought to decide one possible section for its initial offering. It ought to gather research that how it might distinguish its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. If the initial offering proves a success, the business should choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
