Sustaining The Akshaya Patra Foundation A Case Study Solution and Analysis
Intro
Sustaining The Akshaya Patra Foundation A Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing details and communication services. Significant company sections of the company include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports etc. Sustaining The Akshaya Patra Foundation A Case Study Help has actually ended up being a specialized info supplier and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and Sustaining The Akshaya Patra Foundation A Case Study Solution in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous 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 company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sustaining The Akshaya Patra Foundation A Case Study Solution has certain strengths that can be made use of to reduce the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sustaining The Akshaya Patra Foundation A Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong monetary position permits the company to think about several development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restraints for the business in implementing its development program. The weak points of Sustaining The Akshaya Patra Foundation A Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, 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 specific growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Sustaining The Akshaya Patra Foundation A Case Study Analysis as well, but the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has positioned specific hazards to Sustaining The Akshaya Patra Foundation A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Sustaining The Akshaya Patra Foundation A Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market together with existence of high competitors increases the risk of losing the client base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be calculated. The overall monetary performance of the business could be evaluated by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Sustaining The Akshaya Patra Foundation A Case Study Solution is growing and the business is quite efficient in drawing in a large number of consumers at a possible cost.
Together with it, the second graph which reveals the yearly growth in the Sustaining The Akshaya Patra Foundation A Case Study Help total assets, shows that the business is rather efficient in adding value to its properties through its revenues. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given information might be the analysis regarding the distribution of overall revenues of the business. Huge part of the profits 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 possible growth to achieve its future advancement goal.
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 business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces affecting Sustaining The Akshaya Patra Foundation A Case Study Help service are high. The 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 Sustaining The Akshaya Patra Foundation A Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the total business at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Sustaining The Akshaya Patra Foundation A Case Study Help includes the concerns of environmental communities 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 hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in 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.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the documents presented in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Sustaining The Akshaya Patra Foundation A Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sustaining The Akshaya Patra Foundation A Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in various market segments, with a significant concentrate on instructional publications. CIP serves 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 market share of Sustaining The Akshaya Patra Foundation A Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the decreasing industry growth. For that reason, introduction of digital publishing could show to be an instant option with low quantity of danger for the company. Nevertheless, the company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the customer need, the prospective markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the company needs to choose one prospective sector for its preliminary offering. It ought to gather research study that how it might distinguish its digital publishing from the existing rivals' products. The actions above the company need to go for the initial offering. If the preliminary offering proves a success, the company needs to opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
