Sustaining The Akshaya Patra Foundation B Case Study Solution and Analysis
Intro
Sustaining The Akshaya Patra Foundation B Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering details, processing details and communication services. Major company sections of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major products include books, periodicals, online media, exhibitions, research study reports and so on. Sustaining The Akshaya Patra Foundation B Case Study Help has ended up being a specialized information company and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Sustaining The Akshaya Patra Foundation B Case Study Solution in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the abilities 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 B Case Study Analysis has particular strengths that can be made use of to reduce the risks, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Sustaining The Akshaya Patra Foundation B Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position enables the business to think about a number of advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase constraints for the business in executing its advancement program. The weak points of Sustaining The Akshaya Patra Foundation B Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting Sustaining The Akshaya Patra Foundation B Case Study Solution as well, however the growth might be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has posed particular risks to Sustaining The Akshaya Patra Foundation B Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Sustaining The Akshaya Patra Foundation B Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total earnings of Sustaining The Akshaya Patra Foundation B Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is rather efficient in attracting a large number of clients at a prospective price.
Along with it, the 2nd chart which reveals the yearly growth in the Sustaining The Akshaya Patra Foundation B Case Study Help overall assets, reveals that the company is quite efficient in including value to its properties through its incomes. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the offered data might be the analysis regarding the circulation of total revenues of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting Sustaining The Akshaya Patra Foundation B Case Study Help organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Sustaining The Akshaya Patra Foundation B Case Study Analysis 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 integrate effect the demand for the publishing market. Along with it, the economic policies related to the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful materials etc. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Sustaining The Akshaya Patra Foundation B Case Study Solution. However, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Sustaining The Akshaya Patra Foundation B Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market 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. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Sustaining The Akshaya Patra Foundation B Case Study Solution consist of the suppliers of the paper for releasing 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 Buyer.
Negotiating power of purchaser 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 buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Sustaining The Akshaya Patra Foundation B Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks 3rd and 2nd in various market segments, with a major focus on educational publications. CIP acts as a danger 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 marketplace share of Sustaining The Akshaya Patra Foundation B Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Sustaining The Akshaya Patra Foundation B Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the decreasing industry development. Therefore, intro of digital publishing could show to be an immediate option with low quantity of risk for the business. The business might also consider 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 gathers the information related to the consumer demand, the possible markets, the government policies and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a risk to the business's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
