Rwanda Dimension Technology Treading Water In Africa Case Study Solution and Analysis
Intro
Rwanda Dimension Technology Treading Water In Africa Case Study Solution is the largest publishing business 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 Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Rwanda Dimension Technology Treading Water In Africa Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Rwanda Dimension Technology Treading Water In Africa Case Study Help has particular strengths that can be utilized to decrease the hazards, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Rwanda Dimension Technology Treading Water In Africa Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position allows the company to think about numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Rwanda Dimension Technology Treading Water In Africa Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Rwanda Dimension Technology Treading Water In Africa Case Study Solution as well, but the development might be revived by availing particular opportunities presented in the market. The market chances for CMP consist of;
• 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 expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has posed certain threats to Rwanda Dimension Technology Treading Water In Africa Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Rwanda Dimension Technology Treading Water In Africa Case Study Solution due to the consumer shift towards digital libraries.
• The presence 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 gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be computed. However, the total financial performance of the business might be analyzed by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Rwanda Dimension Technology Treading Water In Africa Case Study Help is growing and the company is rather effective in bring in a a great deal of clients at a possible rate.
In addition to it, the 2nd chart which reveals the annual growth in the Rwanda Dimension Technology Treading Water In Africa Case Study Solution overall assets, reveals that the business is rather efficient in including worth to its assets through its earnings. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis regarding the distribution of overall revenues of the company. Huge part of the revenues 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 organisation sections with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Rwanda Dimension Technology Treading Water In Africa Case Study Help includes 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 used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations 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 authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Rwanda Dimension Technology Treading Water In Africa Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Rwanda Dimension Technology Treading Water In Africa Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sections, with a major focus on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Rwanda Dimension Technology Treading Water In Africa Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Rwanda Dimension Technology Treading Water In Africa Case Study Help 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
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an immediate service to avoid the declining industry growth. Introduction of digital publishing could show to be an immediate option with low amount of risk for the business. However, the company might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first collects the data related to the customer demand, the prospective markets, the government policies and the data associated with the rivals provided in the market. After that, the company ought to decide one possible segment for its preliminary offering. It must gather research study that how it might separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the initial offering. If the initial offering proves a success, the company needs to choose the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a risk to the business's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
