Southern Chair Company No Time For Sitting Around 2 Case Study Solution and Analysis
Introduction
Southern Chair Company No Time For Sitting Around 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Southern Chair Company No Time For Sitting Around 2 Case Study Help has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining 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 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 abilities 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
Southern Chair Company No Time For Sitting Around 2 Case Study Help has certain strengths that can be made use of to reduce the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Southern Chair Company No Time For Sitting Around 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong monetary position permits the business to think about a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase constraints for the business in executing its development program. The weaknesses of Southern Chair Company No Time For Sitting Around 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Southern Chair Company No Time For Sitting Around 2 Case Study Solution as well, but the development might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has positioned particular risks to Southern Chair Company No Time For Sitting Around 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Southern Chair Company No Time For Sitting Around 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be computed. Nevertheless, the general financial performance of the company might be evaluated by utilizing the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Southern Chair Company No Time For Sitting Around 2 Case Study Solution is growing and the business is quite efficient in bring in a a great deal of clients at a possible cost.
In addition to it, the 2nd chart which shows the annual development in the Southern Chair Company No Time For Sitting Around 2 Case Study Analysis total properties, shows that the business is rather efficient in including value to its possessions through its earnings. The growth in possessions shows that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis concerning the circulation of overall profits of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Southern Chair Company No Time For Sitting Around 2 Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Southern Chair Company No Time For Sitting Around 2 Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the general business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Southern Chair Company No Time For Sitting Around 2 Case Study Analysis includes the concerns of environmental 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 used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled 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 ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Southern Chair Company No Time For Sitting Around 2 Case Study Solution consist of 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 provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Southern Chair Company No Time For Sitting Around 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market sections, with a major focus on educational publications. CIP functions as a risk 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 Southern Chair Company No Time For Sitting Around 2 Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Southern Chair Company No Time For Sitting Around 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining market growth. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the information related to the customer need, the potential markets, the federal government regulations and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business 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 market is declining because 2008, revealing a threat to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
