Silver Sales Company Case Study Solution and Analysis
Introduction
Silver Sales Company Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing info and interaction services. Significant organisation segments of the company include; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports etc. Silver Sales Company Case Study Help has actually ended up being a specialized information company and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Silver Sales Company Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Silver Sales Company Case Study Help has certain strengths that can be utilized to decrease the dangers, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Silver Sales Company Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position permits the company to consider numerous advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restraints for the business in implementing its development program. The weaknesses of Silver Sales Company Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Silver Sales Company Case Study Help too, however the growth might be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has postured specific dangers to Silver Sales Company Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Silver Sales Company Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the hazard of losing the client base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be determined. The overall monetary performance of the business might be analyzed by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Silver Sales Company Case Study Help is growing and the business is rather efficient in drawing in a large number of customers at a prospective price.
Together with it, the second chart which reveals the yearly development in the Silver Sales Company Case Study Solution overall properties, reveals that the business is rather efficient in including value to its assets through its profits. The development in possessions reveals that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the given data could be the analysis regarding the circulation of total earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of customers of the Silver Sales Company Case Study Analysis. However, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Silver Sales Company Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition 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 competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Silver Sales Company Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Silver Sales Company 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 exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks second and third in different market sections, with a significant concentrate on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Silver Sales Company Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Silver Sales Company Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining industry development. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially collects the data connected to the consumer demand, the prospective markets, the government policies and the data associated with the competitors presented in the market. After that, the company ought to choose one possible segment for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business need to go for the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a danger to the company's long term presence, but the circumstance can be controlled by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
