The Acer Groups China Manufacturing Decision 2 Case Study Solution and Analysis
Intro
The Acer Groups China Manufacturing Decision 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 info company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and The Acer Groups China Manufacturing Decision 2 Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 scenario? Do the long important experience, technical resources and the abilities of the business 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
The Acer Groups China Manufacturing Decision 2 Case Study Analysis has certain strengths that can be utilized to lower the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Acer Groups China Manufacturing Decision 2 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position permits the business to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of The Acer Groups China Manufacturing Decision 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, 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 expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting The Acer Groups China Manufacturing Decision 2 Case Study Analysis as well, however the growth could be revived by availing certain chances presented in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has positioned particular hazards to The Acer Groups China Manufacturing Decision 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of The Acer Groups China Manufacturing Decision 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the threat of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the overall financial performance of the business could be examined by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of The Acer Groups China Manufacturing Decision 2 Case Study Help is growing and the business is rather effective in drawing in a large number of customers at a potential price.
Together with it, the second chart which shows the annual development in the The Acer Groups China Manufacturing Decision 2 Case Study Solution total assets, shows that the company is rather effective in including value to its assets through its incomes. The growth in assets shows that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the distribution of total incomes of the business. Huge part of the incomes 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 service sectors with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting The Acer Groups China Manufacturing Decision 2 Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the The Acer Groups China Manufacturing Decision 2 Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the total company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative products etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of customers of the The Acer Groups China Manufacturing Decision 2 Case Study Analysis. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Acer Groups China Manufacturing Decision 2 Case Study Analysis includes the concerns of ecological neighborhoods 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 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 Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Acer Groups China Manufacturing Decision 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence 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 competitors of The Acer Groups China Manufacturing Decision 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a significant concentrate on educational publications. CIP acts as a hazard 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 The Acer Groups China Manufacturing Decision 2 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as The Acer Groups China Manufacturing Decision 2 Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the decreasing market development. The business could also consider the growth 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 information related to the consumer demand, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, showing a risk to the business's long term presence, however the circumstance can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
