Solar City Case Study Solution and Analysis
Introduction
Solar City Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing details and communication services. Major company sections of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Solar City Case Study Help has actually become a specialized info company and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Solar City Case Study Help has actually spent 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 general and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous 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 company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Solar City Case Study Solution has particular strengths that can be made use of to reduce the risks, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Solar City Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position enables the business to think about numerous advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Solar City Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, impacting Solar City Case Study Analysis as well, however the development might be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented certain dangers to Solar City Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Solar City Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market along with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be computed. Nevertheless, the overall monetary efficiency of the business might be examined by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Solar City Case Study Help is growing and the business is quite effective in bring in a a great deal of consumers at a potential rate.
Together with it, the 2nd graph which reveals the yearly development in the Solar City Case Study Solution total possessions, shows that the company is quite effective in including value to its properties through its profits. The development in possessions shows that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis concerning the circulation of total profits of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting Solar City Case Study Analysis business are high. The federal 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 Solar City Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market. Together with it, the economic policies related to the import of books affect the total organisation at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Solar City Case Study Solution consists of the issues 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first 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 Five Forces Design).
Porter's 5 Forces Design could be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the digital libraries on specific sites. The changing customer choices towards digital learning increase the risk of alternative 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 etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Solar City Case Study Analysis include the providers of the paper for publishing files. 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 Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Solar City 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 publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a significant concentrate on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Solar City Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-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 supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing industry development. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first gathers the data related to the customer demand, the prospective markets, the federal government regulations and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a danger to the company's long term presence, but the situation can be managed by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
