The Business Environment Of Nigeria Case Study Solution and Analysis
Intro
The Business Environment Of Nigeria Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, The Business Environment Of Nigeria Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns 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 utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Business Environment Of Nigeria Case Study Analysis has certain strengths that can be made use of to decrease the threats, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Business Environment Of Nigeria Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position allows the business to think about several advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of The Business Environment Of Nigeria Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting The Business Environment Of Nigeria Case Study Analysis as well, but the growth might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has postured particular threats to The Business Environment Of Nigeria Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of The Business Environment Of Nigeria Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual total profits of The Business Environment Of Nigeria Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite efficient in bring in a big number of customers at a prospective cost.
Along with it, the 2nd chart which reveals the annual development in the The Business Environment Of Nigeria Case Study Help overall assets, shows that the business is rather effective in adding worth to its possessions through its profits. The development in possessions shows that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis concerning the circulation of overall earnings of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the company and the recent 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 considerable impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party 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.
Cost-effective.
Economic forces affecting the publishing sector in general and the The Business Environment Of Nigeria Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the total organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative materials and so on. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the The Business Environment Of Nigeria Case Study Solution. However, the customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting The Business Environment Of Nigeria Case Study Help consists of 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
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. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Business Environment Of Nigeria Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market 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 Business Environment Of Nigeria Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as The Business Environment Of Nigeria Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant service to avoid the declining industry development. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data connected to the consumer need, the possible markets, the government regulations and the data related to the competitors presented in the market. After that, the company must choose one potential section for its initial offering. It needs to collect research that how it could separate its digital publishing from the existing competitors' products. The actions above the company should go for the preliminary offering. The business must go for the other markets if the initial offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, showing a risk to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
