The China Entrepreneurs Forum 2 Case Study Solution and Analysis
Introduction
The China Entrepreneurs Forum 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing details and communication services. Major company sections of the company include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major products consist of books, regulars, online media, exhibits, research study reports and so on. The China Entrepreneurs Forum 2 Case Study Solution has become a specialized info supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, The China Entrepreneurs Forum 2 Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement 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 business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The China Entrepreneurs Forum 2 Case Study Analysis has specific strengths that can be made use of to lower the risks, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The China Entrepreneurs Forum 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the business to consider several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of The China Entrepreneurs Forum 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional 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 avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting The China Entrepreneurs Forum 2 Case Study Solution as well, however the growth might 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 utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually postured certain threats to The China Entrepreneurs Forum 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of The China Entrepreneurs Forum 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry together with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. The overall financial performance of the business could be analyzed by using the charts given in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of The China Entrepreneurs Forum 2 Case Study Solution is growing and the company is quite efficient in bring in a large number of consumers at a potential rate.
Along with it, the 2nd graph which shows the annual growth in the The China Entrepreneurs Forum 2 Case Study Analysis total possessions, reveals that the company is rather efficient in adding worth to its properties through its incomes. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis concerning the distribution of overall earnings of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting The China Entrepreneurs Forum 2 Case Study Analysis service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need 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 needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The China Entrepreneurs Forum 2 Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition 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 competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The China Entrepreneurs Forum 2 Case Study Help include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The China Entrepreneurs Forum 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks third and second in various market sectors, with a significant focus on instructional publications. CIP serves 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 could wean the marketplace share of The China Entrepreneurs Forum 2 Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The China Entrepreneurs Forum 2 Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant option to avoid the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the information related to the customer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the company would be able to implement 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 existence, but the scenario can be controlled by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
