Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution and Analysis
Intro
Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details company and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions 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 capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution has specific strengths that can be used to lower the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the company to consider numerous development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase constraints for the business in implementing its advancement program. The weak points of Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Analysis too, however the development might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured certain dangers to Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall revenues of Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in bring in a large number of consumers at a prospective cost.
Together with it, the second chart which reveals the yearly growth in the Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution overall possessions, reveals that the company is rather effective in adding worth to its assets through its revenues. The growth in possessions reveals that the total value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the circulation of overall profits of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution consists of the concerns of ecological communities over the usage 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Solarcity Corporation Challenges In The Solar Energy Value Chain Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business require an immediate option to avoid the decreasing industry growth. For that reason, introduction of digital publishing might prove to be an immediate service with low quantity of risk for the business. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first gathers the data related to the consumer need, the potential markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term existence, but the scenario can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
