Six Payment Services Case Study Solution and Analysis
Introduction
Six Payment Services Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing information and interaction services. Major organisation sections of the business include; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its significant products include books, periodicals, online media, exhibitions, research study reports and so on. Six Payment Services Case Study Solution has become a specialized information service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Six Payment Services Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement 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 situation? Do the long important experience, technical resources and the capabilities of the business could be utilized 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
Six Payment Services Case Study Solution has certain strengths that can be used to minimize the threats, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Six Payment Services Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the business to think about several development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase restraints for the business in implementing its development program. The weak points of Six Payment Services Case Study Analysis are provided as follows;
• Despite of being a science and innovation 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 strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Six Payment Services Case Study Help as well, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The business might likewise 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 growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has posed certain threats to Six Payment Services Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Six Payment Services Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual total earnings of Six Payment Services Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in drawing in a large number of customers at a possible cost.
In addition to it, the 2nd chart which reveals the yearly development in the Six Payment Services Case Study Help total possessions, shows that the company is rather effective in adding worth to its assets through its earnings. The growth in possessions shows that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the circulation of total earnings of the business. Huge 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 business might move towards other service segments with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand 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 changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Six Payment Services Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
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 competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Six Payment Services Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Six Payment Services Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market sections, with a significant focus on academic publications. CIP functions 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 could wean the market share of Six Payment Services Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Six Payment Services Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant option to avoid the decreasing market growth. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must first gathers the data connected to the consumer demand, the possible markets, the government regulations and the information associated with the competitors provided in the market. After that, the business ought to choose one prospective sector for its initial offering. It ought to collect research that how it might separate its digital publishing from the existing competitors' items. After all the steps above the company ought to opt for the initial offering. The business must go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a hazard to the company's long term existence, but the circumstance can be controlled by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
