Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Solution and Analysis
Intro
Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns 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 abilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Analysis has particular strengths that can be utilized to decrease the hazards, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position allows the company to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Analysis are offered 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 highly relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Analysis too, but the growth could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned certain threats to Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The total monetary performance of the business might be evaluated by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Solution is growing and the company is rather efficient in attracting a a great deal of customers at a possible rate.
Together with it, the second graph which reveals the annual development in the Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Solution total properties, reveals that the business is quite efficient in including value to its assets through its revenues. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis concerning the circulation of overall earnings of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the business and the recent trends 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 could have a substantial influence on the state of mind of the people about the communist ideology of the 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 service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the general service at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier 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 rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Ten Years Later Memoirs Of Life And Work A Decade After An Mba 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 same period, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a major concentrate on instructional publications. CIP functions as a risk 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 Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Ten Years Later Memoirs Of Life And Work A Decade After An Mba Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential 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 present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
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 company to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate service to avoid the declining market growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first gathers the data connected to the customer demand, the prospective markets, the government guidelines and the information connected to the rivals presented in the market. After that, the company needs to choose one possible segment for its initial offering. It must gather research study that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the business ought to opt for the initial offering. If the initial offering shows a success, the company should go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a danger to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
