The Acer Groups China Manufacturing Decision 3 Case Study Solution and Analysis
Introduction
The Acer Groups China Manufacturing Decision 3 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, The Acer Groups China Manufacturing Decision 3 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Acer Groups China Manufacturing Decision 3 Case Study Solution has certain strengths that can be utilized to lower the hazards, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Acer Groups China Manufacturing Decision 3 Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position permits the company to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of The Acer Groups China Manufacturing Decision 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting The Acer Groups China Manufacturing Decision 3 Case Study Help also, but the growth could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually postured specific dangers to The Acer Groups China Manufacturing Decision 3 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of The Acer Groups China Manufacturing Decision 3 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market along with presence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be determined. However, the general financial efficiency of the company might be analyzed by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of The Acer Groups China Manufacturing Decision 3 Case Study Analysis is growing and the company is rather efficient in bring in a large number of consumers at a possible rate.
Along with it, the second graph which reveals the annual development in the The Acer Groups China Manufacturing Decision 3 Case Study Analysis total assets, shows that the business is quite efficient in adding value to its possessions through its earnings. The growth in properties shows that the total value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis concerning the circulation of overall revenues of the company. Huge part of the incomes 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 segments with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the The Acer Groups China Manufacturing Decision 3 Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting The Acer Groups China Manufacturing Decision 3 Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Acer Groups China Manufacturing Decision 3 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Acer Groups China Manufacturing Decision 3 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in various market sections, with a significant focus on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of The Acer Groups China Manufacturing Decision 3 Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
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 new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an instant service to avoid the decreasing industry development. Intro of digital publishing could prove to be an immediate solution with low amount of threat for the company. However, the business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to first collects the data connected to the customer demand, the prospective markets, the government policies and the information related to the competitors provided in the market. After that, the business ought to choose one prospective sector for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing rivals' products. The steps above the business must go for the initial offering. The business should go for the other markets if the initial offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a threat to the business's long term existence, but the scenario can be managed by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
