Suzion Energy Ltd 2 Case Study Solution and Analysis
Introduction
Suzion Energy Ltd 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and Suzion Energy Ltd 2 Case Study Analysis in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Suzion Energy Ltd 2 Case Study Analysis has certain strengths that can be utilized to lower the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Suzion Energy Ltd 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position permits the company to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which could increase constraints for the company in implementing its advancement program. The weaknesses of Suzion Energy Ltd 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting Suzion Energy Ltd 2 Case Study Analysis also, however the growth might be revived by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented specific dangers to Suzion Energy Ltd 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Suzion Energy Ltd 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual total profits of Suzion Energy Ltd 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is quite effective in bring in a big number of clients at a potential price.
In addition to it, the 2nd graph which reveals the yearly growth in the Suzion Energy Ltd 2 Case Study Analysis total possessions, shows that the business is quite effective in adding worth to its assets through its incomes. The development in properties reveals that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the circulation of total revenues of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company 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 federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology along with the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Suzion Energy Ltd 2 Case Study Help includes the concerns of ecological communities over the usage 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 needs to 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 initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Suzion Energy Ltd 2 Case Study Analysis consist of the suppliers of the paper for publishing documents. 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 Purchaser.
Bargaining power of buyer in the publishing industry 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 costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Suzion Energy Ltd 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining industry growth. The business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should initially gathers the information connected to the customer demand, the possible markets, the government policies and the data related to the competitors provided in the market. After that, the business ought to choose one possible section for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the company need to choose the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
