Suntech Power Competition And Financing In Chinas Solar Industry Case Study Solution and Analysis
Introduction
Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing details and communication services. Significant company sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant products include books, regulars, online media, exhibits, research study reports and so on. Suntech Power Competition And Financing In Chinas Solar Industry Case Study Help has ended up being a specialized information supplier and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing industry in basic and Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Suntech Power Competition And Financing In Chinas Solar Industry Case Study Solution has particular strengths that can be used to minimize the threats, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong financial position enables the business to think about numerous development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining because 2008, impacting Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis as well, but the development could be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain threats to Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of information, the financial ratios of CMP could not be calculated. However, the general financial efficiency of the business might be evaluated by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis is growing and the company is quite effective in drawing in a a great deal of customers at a potential rate.
Along with it, the 2nd graph which shows the annual development in the Suntech Power Competition And Financing In Chinas Solar Industry Case Study Help total properties, shows that the business is rather efficient in including value to its assets through its incomes. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the circulation of total profits of the company. Major 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 business could move towards other company segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance 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 might have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Suntech Power Competition And Financing In Chinas Solar Industry Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the general service at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products etc. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Suntech Power Competition And Financing In Chinas Solar Industry Case Study Solution includes the issues 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Suntech Power Competition And Financing In Chinas Solar Industry Case Study Solution include 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 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 market saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Suntech Power Competition And Financing In Chinas Solar Industry Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining industry development. Introduction of digital publishing could show to be an immediate option with low quantity of danger for the company. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to first collects the data related to the customer demand, the prospective markets, the federal government policies and the information 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
The development of the publishing market is decreasing since 2008, revealing a risk to the business's long term existence, but the circumstance can be controlled by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
