South Korea A Concise Profile 2014 Case Study Solution and Analysis
Intro
South Korea A Concise Profile 2014 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; collecting details, processing info and communication services. Major business sections of the business include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. South Korea A Concise Profile 2014 Case Study Help has ended up being a specialized information company and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, South Korea A Concise Profile 2014 Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
South Korea A Concise Profile 2014 Case Study Analysis has particular strengths that can be used to lower the threats, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of South Korea A Concise Profile 2014 Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position enables the company to think about a number of development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which could increase restraints for the business in executing its advancement program. The weaknesses of South Korea A Concise Profile 2014 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business 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 ought to propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting South Korea A Concise Profile 2014 Case Study Analysis also, however the growth might be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has positioned certain threats to South Korea A Concise Profile 2014 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of South Korea A Concise Profile 2014 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual total earnings of South Korea A Concise Profile 2014 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is quite efficient in attracting a large number of customers at a possible rate.
Together with it, the 2nd graph which reveals the yearly development in the South Korea A Concise Profile 2014 Case Study Help overall assets, shows that the company is rather effective in adding worth to its assets through its profits. The growth in properties shows that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis concerning the circulation of total profits of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the company and the recent patterns 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 could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out informative materials and so on. China has the greatest population on the planet with a high population development, showing the increasing number of consumers of the South Korea A Concise Profile 2014 Case Study Help. However, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting South Korea A Concise Profile 2014 Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the risk 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 etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the South Korea A Concise Profile 2014 Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of South Korea A Concise Profile 2014 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and second in various market segments, with a significant concentrate on academic publications. CIP functions as a hazard 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 South Korea A Concise Profile 2014 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 very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden 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 industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an instant option to avoid the decreasing market growth. The company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should initially collects the information related to the customer need, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company should 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 decreasing because 2008, showing a hazard to the business's long term presence, but the situation can be managed by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
