Serious Materials Case Study Solution and Analysis
Intro
Serious Materials Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing information and communication services. Major organisation sectors of the business include; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. Serious Materials Case Study Analysis has actually ended up being a specialized info company and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Serious Materials Case Study Solution in particular. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 capabilities of the company 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
Serious Materials Case Study Solution has certain strengths that can be made use of to reduce the dangers, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Serious Materials Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong monetary position permits the business to consider several development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase constraints for the company in executing its development program. The weak points of Serious Materials Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Serious Materials Case Study Help also, but the growth might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has posed specific hazards to Serious Materials Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Serious Materials Case Study Solution due to the customer shift towards digital libraries.
• The presence 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 gain a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The total financial performance of the business might be examined by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Serious Materials Case Study Solution is growing and the business is rather efficient in attracting a large number of customers at a potential rate.
In addition to it, the second chart which reveals the yearly growth in the Serious Materials Case Study Help overall possessions, reveals that the business is quite effective in adding value to its possessions through its profits. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the distribution of overall profits of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the company. 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 frame of mind 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 Celebration of China. Therefore, it might be stated that the general political forces impacting Serious Materials Case Study Solution service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Serious Materials Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading useful products and so on. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Serious Materials Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Serious Materials Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used 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. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Serious Materials Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Serious Materials Case Study Analysis 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 period, CIP publishes comparable 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 significant concentrate on educational publications. CIP functions 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 could wean the marketplace share of Serious Materials Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate solution to avoid the declining industry growth. The company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should first collects the information related to the customer demand, the prospective markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the company ought to choose one possible sector for its initial offering. It should collect research study that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the business must choose the preliminary offering. If the preliminary offering proves a success, the company should opt for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a danger to the business's long term existence, however the situation can be controlled by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
