Sub Micron Devices Case Study Solution and Analysis
Introduction
Sub Micron Devices Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP 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 market in basic and Sub Micron Devices Case Study Solution in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used 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
Sub Micron Devices Case Study Solution has particular strengths that can be used to minimize the risks, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Sub Micron Devices Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position enables the company to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of Sub Micron Devices Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting Sub Micron Devices Case Study Help as well, but the development might be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has posed certain dangers to Sub Micron Devices Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Sub Micron Devices Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market in addition to presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly overall earnings of Sub Micron Devices Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite effective in attracting a big number of customers at a prospective cost.
In addition to it, the 2nd graph which shows the annual development in the Sub Micron Devices Case Study Analysis overall properties, shows that the company is rather efficient in including value to its possessions through its revenues. The development in assets shows that the total value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis concerning the distribution of total revenues of the business. Huge part of the incomes 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 service sectors with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Sub Micron Devices Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the threat of replacement 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 competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Sub Micron Devices Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest 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 purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market 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. Major rivals of Sub Micron Devices Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Sub Micron Devices Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in 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 provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an immediate service to avoid the decreasing market development. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must initially collects the information related to the consumer demand, the possible markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term presence, however the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
