Surveymonkey In 2014 2 Case Study Solution and Analysis
Introduction
Surveymonkey In 2014 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and Surveymonkey In 2014 2 Case Study Help in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns 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 capabilities of the business 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
Surveymonkey In 2014 2 Case Study Solution has particular strengths that can be used to lower the risks, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Surveymonkey In 2014 2 Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position allows the company to consider numerous development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restrictions for the business in executing its development program. The weak points of Surveymonkey In 2014 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Surveymonkey In 2014 2 Case Study Solution also, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has presented particular hazards to Surveymonkey In 2014 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Surveymonkey In 2014 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall incomes of Surveymonkey In 2014 2 Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in drawing in a large number of clients at a possible price.
In addition to it, the 2nd graph which shows the yearly growth in the Surveymonkey In 2014 2 Case Study Analysis overall properties, reveals that the business is quite effective in adding worth to its assets through its earnings. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis concerning the distribution of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered 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 federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Surveymonkey In 2014 2 Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Surveymonkey In 2014 2 Case Study Analysis in specific includesthe rates 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 financial policies connected to the import of books affect the overall service at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Surveymonkey In 2014 2 Case Study Help consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the files provided in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Surveymonkey In 2014 2 Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Surveymonkey In 2014 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a major focus on instructional publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Surveymonkey In 2014 2 Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Surveymonkey In 2014 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 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 external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining industry growth. Intro of digital publishing could show to be an immediate solution with low amount of threat for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first collects the information associated with the consumer demand, the potential markets, the federal government policies and the data associated with the rivals presented in the market. After that, the company needs to decide one potential section for its preliminary offering. It must gather research study that how it might distinguish its digital publishing from the existing competitors' products. After all the actions above the business must opt for the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a risk to the business's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
