The Columbus Partnership Case Study Solution and Analysis
Intro
The Columbus Partnership Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Columbus Partnership Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important 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 Columbus Partnership Case Study Help has certain strengths that can be used to lower the risks, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Columbus Partnership Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the business to consider several development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of The Columbus Partnership Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting The Columbus Partnership Case Study Help also, however the growth might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has postured particular hazards to The Columbus Partnership Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of The Columbus Partnership Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market together with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to lack of information, the financial ratios of CMP might not be determined. The general financial performance of the company might be evaluated by using the charts offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of The Columbus Partnership Case Study Analysis is growing and the company is quite effective in drawing in a a great deal of consumers at a possible rate.
In addition to it, the 2nd graph which reveals the annual development in the The Columbus Partnership Case Study Solution total possessions, reveals that the business is quite effective in including worth to its properties through its incomes. The growth in properties reveals that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis concerning the circulation of overall profits of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting The Columbus Partnership Case Study Solution company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the The Columbus Partnership Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the overall service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting The Columbus Partnership Case Study Solution consists of the issues 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 must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on certain websites. The changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Columbus Partnership Case Study Solution consist of the suppliers of the paper for releasing files. 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 Buyer.
Haggling 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 purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Columbus Partnership Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a major concentrate on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of The Columbus Partnership Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an immediate option to avoid the decreasing market growth. Introduction of digital publishing might prove to be an immediate option with low amount of danger for the business. Nevertheless, the company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to initially collects the data related to the customer need, the prospective markets, the government guidelines and the information associated with the competitors presented in the market. After that, the business should choose one potential section for its preliminary offering. It must collect research that how it could distinguish its digital publishing from the existing rivals' items. The steps above the business must go for the initial offering. If the initial offering proves a success, the company ought to choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a risk to the business's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
