Seamicro Case Study Solution and Analysis
Intro
Seamicro Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing details and communication services. Significant service sectors of the business include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant items include books, periodicals, online media, exhibits, research study reports and so on. Seamicro Case Study Analysis has actually ended up being a specialized details service provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and Seamicro Case Study Help in specific. These factors consist of;
• Entrance of the brand-new publishing companies 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 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 business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Seamicro Case Study Help has certain strengths that can be used to decrease the threats, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Seamicro Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the business to think about numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weak points of Seamicro Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Seamicro Case Study Solution also, but the development could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain hazards to Seamicro Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Seamicro 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 risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be calculated. The total monetary performance of the company might be analyzed by using the graphs provided in the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Seamicro Case Study Help is growing and the business is rather efficient in attracting a large number of clients at a potential price.
Along with it, the 2nd chart which shows the annual growth in the Seamicro Case Study Solution overall assets, reveals that the company is quite effective in adding value to its possessions through its earnings. The development in assets shows that the total worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis regarding the distribution of total earnings of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact 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 said that the total political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Seamicro Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general company at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Seamicro Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the danger of replacement for the market.
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. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Seamicro Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Seamicro Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Seamicro Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant option to avoid the decreasing industry development. The company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the customer demand, the possible markets, the government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
