Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution and Analysis
Introduction
Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Analysis has specific strengths that can be utilized to reduce the hazards, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the business to consider several development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution as well, however the development might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment 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 vast funds.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has presented specific hazards to Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market in addition to presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual total incomes of Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is rather efficient in bring in a large number of consumers at a potential cost.
Along with it, the 2nd graph which shows the annual growth in the Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Analysis total possessions, reveals that the business is quite effective in including worth to its possessions through its incomes. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis regarding the circulation of total incomes of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the business and the recent trends 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 significant influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Help company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading informative materials and so on. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the digital libraries on certain sites. The altering customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in different market segments, with a significant focus on academic 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 Social Media Get Serious Understanding The Functional Building Blocks Of Social Media 2 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant service to prevent the decreasing industry growth. For that reason, introduction of digital publishing might prove to be an immediate service with low amount of danger for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to first collects the data related to the consumer need, the possible markets, the government policies and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a danger to the company's long term presence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
