The Acer Groups China Manufacturing Decision 4 Case Study Solution and Analysis
Intro
The Acer Groups China Manufacturing Decision 4 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, The Acer Groups China Manufacturing Decision 4 Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable 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 4 Case Study Solution has particular strengths that can be made use of to lower the dangers, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Acer Groups China Manufacturing Decision 4 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position enables the business to think about numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase restrictions for the company in executing its development program. The weaknesses of The Acer Groups China Manufacturing Decision 4 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting The Acer Groups China Manufacturing Decision 4 Case Study Help as well, however the development could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has posed specific hazards to The Acer Groups China Manufacturing Decision 4 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of The Acer Groups China Manufacturing Decision 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence 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 acquire a strong consumer base by using specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. However, the general financial efficiency of the company might be analyzed by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of The Acer Groups China Manufacturing Decision 4 Case Study Help is growing and the company is quite effective in attracting a large number of consumers at a prospective rate.
Along with it, the second chart which shows the yearly growth in the The Acer Groups China Manufacturing Decision 4 Case Study Solution overall properties, reveals that the company is rather effective in adding worth to its properties through its revenues. The development in assets shows that the total worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis concerning the distribution of total profits of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals 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 Celebration of China. It might be stated that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Acer Groups China Manufacturing Decision 4 Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the files provided in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Acer Groups China Manufacturing Decision 4 Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs 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. Significant competitors of The Acer Groups China Manufacturing Decision 4 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as The Acer Groups China Manufacturing Decision 4 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger 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 brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant service to avoid the declining industry growth. Introduction of digital publishing could show to be an instant service with low amount of danger for the company. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company should first collects the information related to the customer demand, the possible markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a threat to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
