The Chongqing Model And The Future Of China 2 Case Study Solution and Analysis
Intro
The Chongqing Model And The Future Of China 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting info, processing details and interaction services. Significant organisation sections of the company include; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant products include books, regulars, online media, exhibits, research study reports and so on. The Chongqing Model And The Future Of China 2 Case Study Help has actually become a specialized info provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, The Chongqing Model And The Future Of China 2 Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable 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 Chongqing Model And The Future Of China 2 Case Study Help has specific strengths that can be made use of to minimize the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Chongqing Model And The Future Of China 2 Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position allows the business to consider a number of development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its development program. The weaknesses of The Chongqing Model And The Future Of China 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining given that 2008, affecting The Chongqing Model And The Future Of China 2 Case Study Analysis as well, but the growth could be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented certain dangers to The Chongqing Model And The Future Of China 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of The Chongqing Model And The Future Of China 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly total incomes of The Chongqing Model And The Future Of China 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the business is rather effective in attracting a big number of consumers at a possible price.
Along with it, the second graph which shows the yearly growth in the The Chongqing Model And The Future Of China 2 Case Study Help total assets, shows that the company is quite effective in adding worth to its properties through its earnings. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis relating to the circulation of overall incomes of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces affecting The Chongqing Model And The Future Of China 2 Case Study Solution organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the The Chongqing Model And The Future Of China 2 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the financial policies connected to the import of books affect the overall business at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative products etc. China has the greatest population in the world with a high population growth, revealing the increasing number of customers of the The Chongqing Model And The Future Of China 2 Case Study Solution. Nevertheless, the customer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Chongqing Model And The Future Of China 2 Case Study Help includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing industry. However, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Chongqing Model And The Future Of China 2 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total 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 a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Chongqing Model And The Future Of China 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in various market segments, with a significant focus on educational publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Chongqing Model And The Future Of China 2 Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as The Chongqing Model And The Future Of China 2 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the 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 along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an instant service to prevent the declining market development. Intro of digital publishing might prove to be an instant service with low quantity of risk for the company. Nevertheless, the company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially gathers the data related to the consumer need, the possible markets, the government policies 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
The development of the publishing market is declining considering that 2008, revealing a threat to the business's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
