Situation Analysis Of Rubicon Md Case Study Solution and Analysis
Introduction
Situation Analysis Of Rubicon Md Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and Situation Analysis Of Rubicon Md Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of 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 capabilities of the company could be utilized 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
Situation Analysis Of Rubicon Md Case Study Solution has particular strengths that can be made use of to minimize the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Situation Analysis Of Rubicon Md Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position permits the business to think about a number of development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Situation Analysis Of Rubicon Md Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining since 2008, affecting Situation Analysis Of Rubicon Md Case Study Help as well, but the growth might be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has posed specific hazards to Situation Analysis Of Rubicon Md Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Situation Analysis Of Rubicon Md Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal 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 consumer base by using specific strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP might not be computed. The total monetary efficiency of the business could be evaluated by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Situation Analysis Of Rubicon Md Case Study Analysis is growing and the business is rather effective in drawing in a a great deal of consumers at a prospective price.
In addition to it, the 2nd chart which shows the yearly growth in the Situation Analysis Of Rubicon Md Case Study Solution overall possessions, reveals that the company is quite efficient in adding value to its properties through its profits. The development in possessions shows that the overall value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis concerning the distribution of overall profits of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative materials etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Situation Analysis Of Rubicon Md Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Situation Analysis Of Rubicon Md Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Situation Analysis Of Rubicon Md Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Situation Analysis Of Rubicon Md Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in different market segments, with a significant concentrate on academic publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Situation Analysis Of Rubicon Md Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant service to prevent the declining industry development. Therefore, introduction of digital publishing might show to be an instant service with low quantity of danger for the company. The company could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the data related to the customer demand, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a danger to the company's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
