The Ciputra Group Shaping The City In Asia 2 Case Study Solution and Analysis
Intro
The Ciputra Group Shaping The City In Asia 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing info and interaction services. Significant company sectors of the company include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant products include books, regulars, online media, exhibits, research study reports etc. The Ciputra Group Shaping The City In Asia 2 Case Study Solution has actually become a specialized info provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in general and The Ciputra Group Shaping The City In Asia 2 Case Study Help in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company 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 Ciputra Group Shaping The City In Asia 2 Case Study Analysis has specific strengths that can be used to decrease the risks, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Ciputra Group Shaping The City In Asia 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong financial position permits the company to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of The Ciputra Group Shaping The City In Asia 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, 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 growth. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting The Ciputra Group Shaping The City In Asia 2 Case Study Analysis as well, however the growth might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The company could also introduce 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 lower its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually presented particular dangers to The Ciputra Group Shaping The City In Asia 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of The Ciputra Group Shaping The City In Asia 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the general financial efficiency of the company could be examined by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of The Ciputra Group Shaping The City In Asia 2 Case Study Analysis is growing and the business is quite efficient in bring in a large number of consumers at a potential price.
Together with it, the second graph which reveals the yearly development in the The Ciputra Group Shaping The City In Asia 2 Case Study Help overall assets, reveals that the business is quite effective in adding value to its possessions through its revenues. The growth in properties shows that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided information might be the analysis concerning the distribution of overall profits of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth 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 development, the customer's choices towards checking out useful materials etc. China has the highest population worldwide with a high population development, showing the increasing number of customers of the The Ciputra Group Shaping The City In Asia 2 Case Study Analysis. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The Ciputra Group Shaping The City In Asia 2 Case Study Analysis includes the concerns of environmental 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 needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Ciputra Group Shaping The City In Asia 2 Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Ciputra Group Shaping The City In Asia 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant service to avoid the decreasing market growth. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the data related to the consumer demand, the possible markets, the government guidelines and the data connected to the rivals provided in the market. After that, the company ought to choose one prospective section for its preliminary offering. It must gather research study that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the business need to go for the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, revealing a danger to the business's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
