State Fair Of Virginia Case Study Solution and Analysis
Intro
State Fair Of Virginia Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, State Fair Of Virginia Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement 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 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
State Fair Of Virginia Case Study Analysis has certain strengths that can be used to decrease the threats, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of State Fair Of Virginia Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the business to consider numerous advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which might increase restraints for the company in executing its development program. The weaknesses of State Fair Of Virginia Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting State Fair Of Virginia Case Study Analysis as well, however the development could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has posed certain dangers to State Fair Of Virginia Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of State Fair Of Virginia Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall profits of State Fair Of Virginia Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in attracting a big number of customers at a potential rate.
In addition to it, the second chart which shows the yearly growth in the State Fair Of Virginia Case Study Help total properties, reveals that the company is quite efficient in including value to its possessions through its incomes. The development in properties shows that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the distribution of overall earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting State Fair Of Virginia Case Study Analysis organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the State Fair Of Virginia Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market. Together with it, the financial policies related to the import of books affect the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting State Fair Of Virginia Case Study Help consists of the concerns of ecological communities over the usage 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 hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines 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 Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the virtual libraries on certain websites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
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 rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the State Fair Of Virginia Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of State Fair Of Virginia Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as State Fair Of Virginia Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
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 demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the declining industry development. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the customer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a danger to the company's long term existence, but the situation can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
