South Koreas High Speed Internet Industry 2 Case Study Solution and Analysis
Introduction
South Koreas High Speed Internet Industry 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, South Koreas High Speed Internet Industry 2 Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth 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 valuable experience, technical resources and the capabilities of the business could be made use of 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 Koreas High Speed Internet Industry 2 Case Study Solution has particular strengths that can be made use of to reduce the hazards, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of South Koreas High Speed Internet Industry 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position permits the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase restrictions for the business in implementing its development program. The weaknesses of South Koreas High Speed Internet Industry 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting South Koreas High Speed Internet Industry 2 Case Study Solution as well, however the development might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain hazards to South Koreas High Speed Internet Industry 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of South Koreas High Speed Internet Industry 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be determined. The total monetary performance of the business could be examined by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of South Koreas High Speed Internet Industry 2 Case Study Solution is growing and the company is rather efficient in drawing in a a great deal of consumers at a potential cost.
Along with it, the 2nd chart which shows the annual development in the South Koreas High Speed Internet Industry 2 Case Study Help total possessions, reveals that the company is quite effective in adding value to its properties through its incomes. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the circulation of overall incomes of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting South Koreas High Speed Internet Industry 2 Case Study Analysis company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting South Koreas High Speed Internet Industry 2 Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must 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 approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers 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 also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the South Koreas High Speed Internet Industry 2 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of South Koreas High Speed Internet Industry 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an instant option to prevent the declining industry growth. For that reason, introduction of digital publishing might show to be an immediate service with low amount of risk for the company. However, the business could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer demand, the prospective markets, the government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a risk to the company's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
