Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution and Analysis
Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Help in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Analysis has certain strengths that can be made use of to lower the risks, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has certain weaknesses which could increase constraints for the business in implementing its advancement program. The weak points of Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
The development of the publishing market is declining because 2008, impacting Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Analysis as well, but the growth might be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competition in the publishing market has actually postured particular risks to Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the danger of losing the consumer base.
Due to lack of information, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly overall incomes of Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a big number of clients at a prospective price.
Along with it, the 2nd chart which reveals the annual development in the Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution overall possessions, reveals that the company is rather efficient in adding worth to its assets through its profits. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis regarding the distribution of total earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a prospective growth to accomplish its future development objective.
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces impacting Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Help organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading informative products etc. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the digital libraries on certain sites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market 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 prices.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Shanghai Zhangjiang Hi Tech Park Development Co Ltd Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
As the choices are moving towards digital publishing and the business need an instant solution to avoid the decreasing industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially gathers the information connected to the customer need, the potential markets, the government policies and the information connected to the competitors presented in the market. After that, the business needs to decide one prospective section for its preliminary offering. It ought to gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the business ought to choose the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
The growth of the publishing industry is decreasing since 2008, showing a threat to the company's long term presence, however the scenario can be managed by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.