Six Payment Services Case Study Solution and Analysis
Six Payment Services Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing info and interaction services. Significant company segments of the business consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant products include books, regulars, online media, exhibits, research reports and so on. Six Payment Services Case Study Solution has actually become a specialized details supplier and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Six Payment Services Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change 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 business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Six Payment Services Case Study Analysis has specific strengths that can be made use of to minimize the dangers, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Six Payment Services Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position enables the company to think about a number of development chances without any worry of raising fund externally.
Together with the strengths, the company has particular weak points which might increase constraints for the company in executing its advancement 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 business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
The development of the publishing market is decreasing because 2008, affecting Six Payment Services Case Study Help as well, however the growth might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific risks to Six Payment Services Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Six Payment Services Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry together with existence of high competitors increases the hazard of losing the consumer base.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly overall incomes of Six Payment Services Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather effective in attracting a big number of consumers at a prospective cost.
Together with it, the 2nd graph which shows the yearly growth in the Six Payment Services Case Study Help total possessions, shows that the business is quite efficient in adding value to its properties through its incomes. The growth in possessions shows that the overall worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis relating to the circulation of overall revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a prospective growth to attain its future advancement goal.
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Six Payment Services Case Study Help business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Six Payment Services Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies associated with the import of books impact the general business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving 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 forces affecting 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 reduce the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces impacting Six Payment Services Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on particular websites. The changing consumer choices towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Six Payment Services Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry 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.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Six Payment Services Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in numerous market sections, with a major focus on instructional publications. CIP serves as a hazard 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 Six Payment Services Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Six Payment Services Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant option to avoid the declining industry development. Intro of digital publishing could show to be an immediate solution with low amount of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should initially collects the data related to the customer need, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the development of the publishing market is declining since 2008, revealing a danger to the company's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.