The Chongqing Model And The Future Of China Case Study Solution and Analysis
Introduction
The Chongqing Model And The Future Of China Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing info and communication services. Major business segments of the company include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports and so on. The Chongqing Model And The Future Of China Case Study Help has actually become a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and The Chongqing Model And The Future Of China Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the abilities of the company could be utilized 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 Chongqing Model And The Future Of China Case Study Help has certain strengths that can be utilized to lower the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Chongqing Model And The Future Of China Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong monetary position enables the business to think about numerous advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of The Chongqing Model And The Future Of China Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting The Chongqing Model And The Future Of China Case Study Help as well, however the development might be revived by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by utilizing 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 vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has presented specific dangers to The Chongqing Model And The Future Of China Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of The Chongqing Model And The Future Of China Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal 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 consumer base by using specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry together with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be determined. The overall monetary performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of The Chongqing Model And The Future Of China Case Study Help is growing and the company is rather effective in attracting a a great deal of consumers at a potential price.
Together with it, the second chart which reveals the yearly development in the The Chongqing Model And The Future Of China Case Study Help overall assets, shows that the company is quite efficient in including value to its properties through its earnings. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the given information might be the analysis concerning the circulation of overall revenues of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces impacting The Chongqing Model And The Future Of China Case Study Analysis service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out helpful materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the The Chongqing Model And The Future Of China Case Study Solution. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Chongqing Model And The Future Of China Case Study Help consists of the concerns of environmental communities over the use 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 damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the files presented in the digital libraries on specific websites. The changing customer choices towards digital knowing increase the danger of substitution 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 rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Chongqing Model And The Future Of China Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Chongqing Model And The Future Of China Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks third and second in different market segments, with a major focus on academic publications. CIP acts as a threat 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 Chongqing Model And The Future Of China Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as The Chongqing Model And The Future Of China Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
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 new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an instant solution to prevent the declining industry growth. The company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to initially gathers the information connected to the consumer demand, the potential markets, the government policies and the information connected to the rivals presented in the market. After that, the business needs to choose one potential sector for its initial offering. It must collect research study that how it could distinguish its digital publishing from the existing rivals' products. The actions above the business should go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a hazard to the company's long term existence, however the scenario can be controlled by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
