The 3 Circle Growth Project Case Study Solution and Analysis
Introduction
The 3 Circle Growth Project Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and The 3 Circle Growth Project Case Study Solution in particular. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 capabilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The 3 Circle Growth Project Case Study Analysis has particular strengths that can be made use of to lower the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The 3 Circle Growth Project Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to think about a number of development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase constraints for the business in executing its development program. The weaknesses of The 3 Circle Growth Project Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, affecting The 3 Circle Growth Project Case Study Solution too, however the development might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has posed specific risks to The 3 Circle Growth Project Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The 3 Circle Growth Project Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market along with presence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly total profits of The 3 Circle Growth Project Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is quite effective in bring in a large number of clients at a potential price.
In addition to it, the 2nd graph which reveals the yearly growth in the The 3 Circle Growth Project Case Study Help total properties, shows that the company is rather efficient in adding value to its possessions through its profits. The growth in assets reveals that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the circulation of total profits of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting The 3 Circle Growth Project Case Study Analysis business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the The 3 Circle Growth Project Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies related to the import of books affect the general company at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading useful products and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the The 3 Circle Growth Project Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The 3 Circle Growth Project 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 needed to be disposable 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 guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry 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, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The 3 Circle Growth Project Case Study Analysis consist of the providers of the paper for publishing files. 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.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence 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. Major competitors of The 3 Circle Growth Project Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a major focus on instructional publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of The 3 Circle Growth Project Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as The 3 Circle Growth Project Case Study Analysis and CIP. It is likewise one of the popular 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 variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 company segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining market growth. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the consumer need, the prospective markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a risk to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
