Term Paper Assignment Case Study Solution and Analysis
Intro
Term Paper Assignment Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Term Paper Assignment Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions 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 company could be used 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
Term Paper Assignment Case Study Solution has specific strengths that can be utilized to decrease the dangers, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Term Paper Assignment Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position allows the business to consider numerous advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Term Paper Assignment Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining since 2008, affecting Term Paper Assignment Case Study Analysis as well, however the development might be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular hazards to Term Paper Assignment Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Term Paper Assignment Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be determined. The overall financial performance of the business might be evaluated by using the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Term Paper Assignment Case Study Solution is growing and the company is rather efficient in bring in a a great deal of consumers at a potential price.
Together with it, the 2nd graph which shows the annual development in the Term Paper Assignment Case Study Help overall possessions, reveals that the company is quite effective in adding value to its assets through its earnings. The development in properties reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis regarding the circulation of overall earnings of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces affecting Term Paper Assignment Case Study Analysis business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative products etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Term Paper Assignment Case Study Help. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Term Paper Assignment Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the digital libraries on certain sites. The changing customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition 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 competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Term Paper Assignment Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Term Paper Assignment Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks second and third in various market segments, with a significant concentrate on educational publications. CIP serves 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 Term Paper Assignment Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate option to avoid the decreasing market development. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the consumer need, the potential markets, the federal government guidelines and the data related to the competitors presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a risk to the company's long term presence, however the scenario can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
