The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Solution and Analysis
Intro
The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used 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 Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Help has particular strengths that can be utilized to decrease the risks, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the business to think about several development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restraints for the business in implementing its development program. The weak points of The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Help as well, but the development might be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific risks to The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be determined. However, the overall monetary efficiency of the business might be examined by using the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Help is growing and the business is quite efficient in attracting a large number of customers at a potential rate.
Along with it, the second graph which reveals the annual growth in the The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Analysis total assets, reveals that the company is rather efficient in adding worth to its properties through its revenues. The growth in properties shows that the overall value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the distribution of total profits of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies 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.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry 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 Chinese Wireless Communications Industry In 2012 And Beyond An Industry Note 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
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 brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an instant service to avoid the decreasing market growth. Introduction of digital publishing could show to be an instant solution with low amount of threat for the company. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the information related to the consumer demand, the potential markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a risk to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
