The Acer Groups China Manufacturing Decision 2 Case Study Solution and Analysis
The Acer Groups China Manufacturing Decision 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, The Acer Groups China Manufacturing Decision 2 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in particular. These aspects consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several 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?
The Acer Groups China Manufacturing Decision 2 Case Study Solution has particular strengths that can be utilized to reduce the hazards, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Acer Groups China Manufacturing Decision 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position enables the business to consider numerous advancement chances with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restraints for the business in implementing its advancement program. The weak points 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 company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is declining considering that 2008, affecting The Acer Groups China Manufacturing Decision 2 Case Study Help also, however the growth might be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually posed certain threats to The Acer Groups China Manufacturing Decision 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of The Acer Groups China Manufacturing Decision 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
The business has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be determined. However, the overall monetary performance of the company might be evaluated by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of The Acer Groups China Manufacturing Decision 2 Case Study Analysis is growing and the business is quite effective in bring in a large number of clients at a prospective cost.
Together with it, the second graph which shows the yearly growth in the The Acer Groups China Manufacturing Decision 2 Case Study Solution total assets, reveals that the company is quite effective in including value to its assets through its earnings. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis regarding the distribution of total incomes of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a prospective growth to accomplish its future development objective.
PESTEL analysis might be conducted to discover the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the The Acer Groups China Manufacturing Decision 2 Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies related to the import of books impact the overall service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the The Acer Groups China Manufacturing Decision 2 Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting The Acer Groups China Manufacturing Decision 2 Case Study Solution consists of the issues of environmental 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 damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the digital libraries on certain websites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Acer Groups China Manufacturing Decision 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry 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 documents at competitive costs.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Acer Groups China Manufacturing Decision 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as The Acer Groups China Manufacturing Decision 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business need an immediate service to avoid the decreasing market development. Intro of digital publishing might prove to be an immediate option with low quantity of risk for the company. Nevertheless, the business could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially collects the information related to the consumer demand, the possible markets, the government policies and the information connected to the competitors presented in the market. After that, the company ought to choose one possible segment for its initial offering. It needs to collect research study that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the business should go for the initial offering. If the initial offering shows a success, the company must opt for the other markets. In this method the company would be able to execute its digital publishing program.
The development of the publishing industry is declining given that 2008, showing a risk to the business's long term existence, however the scenario can be managed by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.