Striking At The Queen 2 Case Study Solution and Analysis
Introduction
Striking At The Queen 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and Striking At The Queen 2 Case Study Analysis in particular. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Striking At The Queen 2 Case Study Solution has particular strengths that can be made use of to lower the risks, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Striking At The Queen 2 Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong financial position allows the company to consider a number of development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its development program. The weak points of Striking At The Queen 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business 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 ought to propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Striking At The Queen 2 Case Study Solution too, however the growth could be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured particular hazards to Striking At The Queen 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Striking At The Queen 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP could not be calculated. Nevertheless, the general financial efficiency of the business could be analyzed by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Striking At The Queen 2 Case Study Analysis is growing and the company is quite efficient in attracting a a great deal of consumers at a potential price.
Together with it, the second chart which reveals the annual development in the Striking At The Queen 2 Case Study Help total properties, shows that the company is quite efficient in including value to its possessions through its incomes. The development in properties shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis regarding the circulation of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided 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, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Striking At The Queen 2 Case Study Analysis service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Striking At The Queen 2 Case Study Solution in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Striking At The Queen 2 Case Study Help includes the concerns of ecological neighborhoods 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 used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract 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 go into in the marketplace.
Threat of Substitution.
Threat 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 specific sites. The altering consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Striking At The Queen 2 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Striking At The Queen 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and second in different market segments, with a major concentrate on instructional publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Striking At The Queen 2 Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Striking At The Queen 2 Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger 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 current capabilities.
• 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 concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant service to avoid the decreasing industry development. Introduction of digital publishing could show to be an immediate option with low amount of danger for the business. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should initially collects the data connected to the consumer need, the potential markets, the government guidelines and the information connected to the rivals presented in the market. After that, the company should decide one prospective sector for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing rivals' products. The actions above the company need to go for the preliminary offering. If the preliminary offering proves a success, the business ought to opt for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, revealing a hazard to the business's long term presence, but the circumstance can be managed by thinking about 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 avoid the risk of failure for entryway in the new markets.
