Serious Materials 2 Case Study Solution and Analysis
Intro
Serious Materials 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing info and communication services. Major organisation segments of the business include; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports etc. Serious Materials 2 Case Study Help has become a specialized info supplier and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP 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 industry in basic and Serious Materials 2 Case Study Analysis in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change 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 important experience, technical resources and the capabilities of the business could be used 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
Serious Materials 2 Case Study Analysis has certain strengths that can be used to minimize the threats, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Serious Materials 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong financial position allows the business to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the business in executing its development program. The weak points of Serious Materials 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, 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 development. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining since 2008, affecting Serious Materials 2 Case Study Analysis as well, but the growth could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has presented certain threats to Serious Materials 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Serious Materials 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual total incomes of Serious Materials 2 Case Study Analysis during the period 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 rather effective in drawing in a large number of clients at a possible price.
Together with it, the 2nd graph which shows the annual development in the Serious Materials 2 Case Study Analysis overall properties, shows that the business is quite effective in including value to its properties through its revenues. The development in possessions shows that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis regarding the circulation of total earnings of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Serious Materials 2 Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Serious Materials 2 Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Serious Materials 2 Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market 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 documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Serious Materials 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a major concentrate on academic publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Serious Materials 2 Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
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 brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the company require an immediate solution to prevent the declining market development. Intro of digital publishing might prove to be an instant solution with low amount of threat for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the information connected to the consumer demand, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the business ought to decide one prospective sector for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing rivals' products. After all the steps above the company should go for the preliminary offering. If the preliminary offering shows a success, the business should opt for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, however the scenario can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
