Social Media 2 Case Study Solution and Analysis
Introduction
Social Media 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Social Media 2 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Social Media 2 Case Study Solution has certain strengths that can be utilized to lower the risks, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Social Media 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position enables the company to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Social Media 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining because 2008, affecting Social Media 2 Case Study Help as well, however the development could be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned particular dangers to Social Media 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Social Media 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be determined. However, the total monetary performance of the business might be evaluated by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Social Media 2 Case Study Analysis is growing and the company is rather effective in bring in a a great deal of consumers at a possible price.
Together with it, the 2nd chart which shows the yearly growth in the Social Media 2 Case Study Analysis overall possessions, shows that the business is quite effective in adding worth to its assets through its profits. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis relating to the distribution of total earnings of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Social Media 2 Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published documents is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Social Media 2 Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Social Media 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Social Media 2 Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an instant option to avoid the decreasing industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should first gathers the data related to the consumer demand, the prospective markets, the government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the business ought 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 declining given that 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
