The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution and Analysis
Introduction
The Creative Industries The Promise Of Digital Technology Module Note 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 info provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the business 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 Solution has particular strengths that can be utilized to decrease the risks, conquer the weak point and avail the chances. Strengths of CMP are given 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 company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position allows the business to think about numerous development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase restraints for the company in implementing its development 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 company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, affecting The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis also, but the growth might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment 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 utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has posed certain threats to The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual overall revenues of The Creative Industries The Promise Of Digital Technology Module Note Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in drawing in a large number of consumers at a possible rate.
Along with it, the second chart which reveals the annual development in the The Creative Industries The Promise Of Digital Technology Module Note Case Study Help total assets, reveals that the company is rather efficient in adding worth to its assets through its earnings. The growth in possessions reveals that the overall value of the firm 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 circulation of overall revenues of the business. Major 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 organisation segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect 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 could be said that the general political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the The Creative Industries The Promise Of Digital Technology Module Note Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the total organisation at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Creative Industries The Promise Of Digital Technology Module Note Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Creative Industries The Promise Of Digital Technology Module Note Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in numerous market sectors, with a major focus on educational publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Creative Industries The Promise Of Digital Technology Module Note Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 business sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining industry development. Therefore, intro of digital publishing could show to be an instant service with low amount of danger for the business. Nevertheless, the business could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should initially gathers the information related to the consumer need, the prospective markets, the government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, revealing a hazard to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
