Serious Materials Case Study Solution and Analysis
Serious Materials Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and Serious Materials Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns 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 company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Serious Materials Case Study Solution has certain strengths that can be made use of to lower the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Serious Materials Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the business to consider a number of advancement opportunities without any fear of raising fund externally.
Along with the strengths, the business has particular weak points which might increase restraints for the business in executing its advancement program. The weaknesses of Serious Materials Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
The development of the publishing industry is decreasing considering that 2008, affecting Serious Materials Case Study Analysis as well, however the growth could be restored by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competition in the publishing market has postured particular dangers to Serious Materials Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Serious Materials Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market together with presence of high competition increases the hazard of losing the client base.
The business has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be calculated. Nevertheless, the total financial performance of the company might be evaluated by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Serious Materials Case Study Solution is growing and the company is quite efficient in drawing in a a great deal of consumers at a potential cost.
Along with it, the second graph which reveals the yearly development in the Serious Materials Case Study Help overall possessions, reveals that the business is rather effective in including value to its assets through its incomes. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis relating to the distribution of total incomes of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a potential development to attain its future advancement objective.
PESTEL analysis could be performed to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces impacting Serious Materials Case Study Help company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Serious Materials Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall business at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Serious Materials Case Study Help. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting Serious Materials Case Study Help consists of the issues 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 must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Serious Materials Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP runs in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Serious Materials Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry 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 need an instant service to avoid the declining industry development. Therefore, introduction of digital publishing could show to be an immediate option with low amount of danger for the business. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should first collects the information connected to the customer demand, the prospective markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the company needs to decide one potential segment for its initial offering. It should collect research study that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the business need to choose the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by considering a development 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 risk of failure for entrance in the new markets.