Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Solution and Analysis
Intro
Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Analysis in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Analysis has specific strengths that can be made use of to minimize the dangers, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position allows the company to consider numerous development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Solution as well, however the growth could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has postured certain risks to Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Analysis due to the customer shift towards virtual 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 rivals can get a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market along with presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total revenues of Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a potential price.
Together with it, the 2nd graph which shows the yearly growth in the Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Analysis total properties, shows that the company is quite effective in adding worth to its properties through its earnings. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis regarding the distribution of total profits of the company. Huge part of the earnings of CMP originates 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 possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the digital libraries on certain websites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Solution 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 provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and third in various market sections, with a major focus on instructional publications. CIP functions as a danger 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 market share of Shanghai Zhenhua Heavy Industries Co Ltd Zpmc Chinese Version Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate solution to avoid the declining market development. The company could also 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 data related to the customer need, the possible markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a threat to the company's long term presence, but the situation can be controlled by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
