The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution and Analysis
Intro
The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing details and communication services. Significant business sections of the company consist of; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. The Creative Industries The Promise Of Digital Technology Module Note Case Study Help has ended up being a specialized details service provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, The Creative Industries The Promise Of Digital Technology Module Note Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous 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 capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Creative Industries The Promise Of Digital Technology Module Note Case Study Help has specific strengths that can be utilized to reduce the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position permits the business to think about several development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase constraints for the business in implementing its advancement program. The weaknesses of The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution are offered 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 growth. It should propose particular growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting The Creative Industries The Promise Of Digital Technology Module Note Case Study Help too, however the growth could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually postured specific hazards to The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly overall earnings of The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in drawing in a big number of clients at a potential cost.
Along with it, the 2nd chart which reveals the yearly growth in the The Creative Industries The Promise Of Digital Technology Module Note Case Study Help overall assets, shows that the company is rather efficient in including value to its assets through its incomes. The development in properties reveals that the total value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis relating to the distribution of total profits of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology along with the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations 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 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents presented in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market 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. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 could wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
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 demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate option to avoid the decreasing industry development. The company could also think about the growth 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 customer need, the possible markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the business must decide one potential sector for its preliminary offering. It needs to gather research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the business should go for the initial offering. If the preliminary offering shows a success, the company needs to opt for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a threat to the company's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
