Silver Sales Company 2 Case Study Solution and Analysis
Introduction
Silver Sales Company 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Silver Sales Company 2 Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Silver Sales Company 2 Case Study Solution has certain strengths that can be made use of to reduce the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Silver Sales Company 2 Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong financial position enables the company to consider numerous development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of Silver Sales Company 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Silver Sales Company 2 Case Study Help also, however the development could be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has postured particular threats to Silver Sales Company 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Silver Sales Company 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. The total monetary efficiency of the business might be evaluated by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Silver Sales Company 2 Case Study Help is growing and the company is rather effective in drawing in a large number of clients at a prospective cost.
Along with it, the second chart which shows the yearly development in the Silver Sales Company 2 Case Study Solution total possessions, reveals that the company is quite efficient in including worth to its assets through its incomes. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data might be the analysis concerning the circulation of overall profits of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the total political forces impacting Silver Sales Company 2 Case Study Analysis service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful materials etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Silver Sales Company 2 Case Study Help. However, the customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Silver Sales Company 2 Case Study Help consists of the concerns of environmental 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first 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.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Silver Sales Company 2 Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Silver Sales Company 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in different market segments, with a major concentrate on academic publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Silver Sales Company 2 Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among 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
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant option to avoid the declining industry development. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to first collects the data related to the consumer demand, the potential markets, the federal government regulations and the information related to the rivals presented 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 implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a hazard to the company's long term presence, however the situation can be controlled by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
