Sound Group China Urban Waste Entrepreneurs Case Study Solution and Analysis
Sound Group China Urban Waste Entrepreneurs Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing details and communication services. Significant organisation sectors of the business include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. Sound Group China Urban Waste Entrepreneurs Case Study Solution has become a specialized information provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Sound Group China Urban Waste Entrepreneurs Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement 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 circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Sound Group China Urban Waste Entrepreneurs Case Study Help has certain strengths that can be made use of to minimize the hazards, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Sound Group China Urban Waste Entrepreneurs Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the company to consider numerous development chances with no worry of raising fund externally.
In addition to the strengths, the company has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Sound Group China Urban Waste Entrepreneurs Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing industry is decreasing because 2008, affecting Sound Group China Urban Waste Entrepreneurs Case Study Solution also, but the development might be restored by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has posed specific risks to Sound Group China Urban Waste Entrepreneurs Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Sound Group China Urban Waste Entrepreneurs Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the consumer base.
Due to lack of data, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual overall revenues of Sound Group China Urban Waste Entrepreneurs Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is quite effective in bring in a big number of customers at a prospective rate.
Together with it, the second graph which reveals the annual development in the Sound Group China Urban Waste Entrepreneurs Case Study Help overall assets, shows that the company is rather effective in adding worth to its possessions through its profits. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the given data could be the analysis concerning the distribution of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible development to attain its future development objective.
PESTEL analysis might be performed to learn the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Sound Group China Urban Waste Entrepreneurs Case Study Solution 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 effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting Sound Group China Urban Waste Entrepreneurs 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 utilized while publishing needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Sound Group China Urban Waste Entrepreneurs Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
CMP runs in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Sound Group China Urban Waste Entrepreneurs Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sections, with a major focus on instructional publications. CIP acts 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 Sound Group China Urban Waste Entrepreneurs Case Study Help quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Sound Group China Urban Waste Entrepreneurs Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the company need an instant solution to avoid the decreasing market growth. The business might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first collects the information 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 shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
The growth of the publishing industry is declining since 2008, revealing a risk to the company's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.