Shanghai Diligence Law Firm Chinese Version Case Study Solution and Analysis
Introduction
Shanghai Diligence Law Firm Chinese Version Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Shanghai Diligence Law Firm Chinese Version Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several 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 utilized 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
Shanghai Diligence Law Firm Chinese Version Case Study Analysis has certain strengths that can be utilized to decrease the threats, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Shanghai Diligence Law Firm Chinese Version Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position enables the business to consider several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase restrictions for the business in executing its advancement program. The weak points of Shanghai Diligence Law Firm Chinese Version Case Study Analysis are given 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 development. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Shanghai Diligence Law Firm Chinese Version Case Study Help as well, but the development might be revived by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has presented specific threats to Shanghai Diligence Law Firm Chinese Version Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Shanghai Diligence Law Firm Chinese Version Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly overall earnings of Shanghai Diligence Law Firm Chinese Version Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in attracting a big number of clients at a prospective cost.
In addition to it, the second chart which reveals the annual development in the Shanghai Diligence Law Firm Chinese Version Case Study Solution overall possessions, reveals that the company is quite effective in adding value to its assets through its incomes. The growth in assets shows that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis relating to the circulation of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the efficiency of the company and the recent 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 significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the overall political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Shanghai Diligence Law Firm Chinese Version Case Study Analysis. However, the customer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Shanghai Diligence Law Firm Chinese Version Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number 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 Supplier.
The major suppliers of the Shanghai Diligence Law Firm Chinese Version Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Shanghai Diligence Law Firm Chinese Version Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market sectors, with a significant focus on academic publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Shanghai Diligence Law Firm Chinese Version Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 company sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing industry development. Intro of digital publishing could prove to be an immediate solution with low amount of threat for the business. The company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to initially collects the information connected to the customer need, the prospective markets, the government guidelines and the data related to the competitors presented in the market. After that, the company should decide one prospective segment for its initial offering. It must collect research that how it could separate its digital publishing from the existing competitors' items. After all the actions above the business ought to go for the preliminary offering. If the initial offering proves a success, the business must opt for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a danger to the business's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
