The Ciputra Group Shaping The City In Asia Case Study Solution and Analysis
Intro
The Ciputra Group Shaping The City In Asia Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, The Ciputra Group Shaping The City In Asia Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 abilities of the business could be utilized 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 Case Study Help has specific strengths that can be used to reduce the risks, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Ciputra Group Shaping The City In Asia Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong financial position allows the business to think about several development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its development program. The weak points of The Ciputra Group Shaping The City In Asia Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting The Ciputra Group Shaping The City In Asia Case Study Solution as well, but the growth could be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client 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 large funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented certain risks to The Ciputra Group Shaping The City In Asia Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of The Ciputra Group Shaping The City In Asia Case Study Help due to the consumer shift towards virtual libraries.
• The existence 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 get a strong customer base by using particular techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be computed. However, the general financial performance of the business might be evaluated by utilizing the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of The Ciputra Group Shaping The City In Asia Case Study Analysis is growing and the business is quite efficient in attracting a large number of customers at a possible rate.
Along with it, the 2nd chart which shows the yearly development in the The Ciputra Group Shaping The City In Asia Case Study Solution total assets, reveals that the company is quite efficient in including value to its possessions through its incomes. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the circulation of total profits of the business. Huge part of the profits 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 possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Ciputra Group Shaping The City In Asia Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the released documents is the documents presented in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Ciputra Group Shaping The City In Asia Case Study Help include the providers of the paper for releasing files. 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 Buyer.
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 market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry 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. Major competitors of The Ciputra Group Shaping The City In Asia Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an instant solution to avoid the decreasing market growth. Intro of digital publishing might prove to be an immediate service with low quantity of danger for the business. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially gathers the data associated with the consumer need, the potential markets, the government policies and the data related to the rivals provided in the market. After that, the company needs to decide one prospective section for its preliminary offering. It needs to collect research that how it could differentiate its digital publishing from the existing rivals' items. After all the steps above the company must opt for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a risk to the business's long term presence, however the scenario can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
