The Dark Side Of Information Technology 2 Case Study Solution and Analysis
Introduction
The Dark Side Of Information Technology 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and The Dark Side Of Information Technology 2 Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions 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 company 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 Dark Side Of Information Technology 2 Case Study Analysis has particular strengths that can be utilized to minimize the risks, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Dark Side Of Information Technology 2 Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position allows the business to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase restrictions for the company in implementing its development program. The weaknesses of The Dark Side Of Information Technology 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, impacting The Dark Side Of Information Technology 2 Case Study Analysis too, however the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has posed specific threats to The Dark Side Of Information Technology 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of The Dark Side Of Information Technology 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry along with presence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total incomes of The Dark Side Of Information Technology 2 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in bring in a big number of clients at a possible cost.
Together with it, the 2nd chart which shows the annual growth in the The Dark Side Of Information Technology 2 Case Study Solution total assets, reveals that the company is quite efficient in adding value to its assets through its profits. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis relating to the distribution of total earnings of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out informative materials etc. China has the greatest population on the planet with a high population growth, revealing the increasing variety of customers of the The Dark Side Of Information Technology 2 Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The Dark Side Of Information Technology 2 Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Dark Side Of Information Technology 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence 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 Dark Side Of Information Technology 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as The Dark Side Of Information Technology 2 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• 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 present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an immediate option to prevent the decreasing market growth. Intro of digital publishing could prove to be an immediate service with low quantity of danger for the business. The company might likewise consider the expansion 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 information associated with the customer need, the potential markets, the federal government guidelines and the information connected to the competitors provided in the market. After that, the business needs to decide one potential segment for its initial offering. It needs to gather research that how it could distinguish its digital publishing from the existing competitors' items. After all the steps above the company should choose the initial offering. If the initial offering shows a success, the company should choose the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, revealing a threat to the company's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
