The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Solution and Analysis
Introduction
The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 scenario? 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Analysis has certain strengths that can be used to decrease the dangers, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong financial position enables the business to consider several development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase restraints for the company in implementing its advancement program. The weak points of The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Analysis as well, but the growth might be restored by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned specific dangers to The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the threat of losing the client base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be calculated. Nevertheless, the overall monetary performance of the business might be evaluated by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help is growing and the company is rather effective in attracting a large number of consumers at a potential cost.
Along with it, the second chart which shows the annual growth in the The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Analysis total properties, reveals that the company is rather efficient in including value to its assets through its earnings. The development in possessions reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the distribution of total revenues 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 company could move towards other business sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market. Along with it, the economic policies related to the import of books affect the overall service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property 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 non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the virtual libraries on particular sites. The altering 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 large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help consist of the suppliers of the paper for releasing files. 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 Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs 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. Significant rivals of The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in various market segments, with a major 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 marketplace share of The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as The Cable And Satellite Broadcasting Association Of Asia Protecting Intellectual Property Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an immediate option to avoid the declining market growth. Introduction of digital publishing could prove to be an immediate service with low amount of danger for the company. The company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the data associated with the consumer demand, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. After that, the company should decide one possible sector for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' products. After all the steps above the business must go for the preliminary offering. If the initial offering shows a success, the company must go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the business's long term presence, but the scenario can be controlled by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
