Statistics Assignment Case Study Solution and Analysis
Intro
Statistics Assignment Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Statistics Assignment Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing 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 numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important 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
Statistics Assignment Case Study Analysis has specific strengths that can be used to decrease the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Statistics Assignment Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position allows the company to consider numerous advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Statistics Assignment Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Statistics Assignment Case Study Solution too, but the development could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has positioned particular risks to Statistics Assignment Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Statistics Assignment Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market along with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual overall profits of Statistics Assignment Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is rather effective in attracting a large number of consumers at a prospective cost.
In addition to it, the second chart which shows the yearly development in the Statistics Assignment Case Study Solution total possessions, shows that the business is quite effective in including worth to its possessions through its revenues. The development in assets shows that the overall value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the circulation of total earnings of the business. 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 business could move towards other organisation sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting Statistics Assignment Case Study Help service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Statistics Assignment Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Statistics Assignment Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper used 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 policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided 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 bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the files provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Statistics Assignment Case Study Solution consist of the suppliers of the paper for publishing 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.
Bargaining power of buyer 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 purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Statistics Assignment Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company require an immediate service to avoid the declining market development. Intro of digital publishing could show to be an immediate option with low quantity of danger for the company. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first gathers the information related to the consumer demand, the prospective markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
