The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution and Analysis
Introduction
The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting details, processing info and interaction services. Significant company sectors of the company consist of; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Analysis has actually ended up being a specialized details company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
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 situation? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Help has certain strengths that can be used to minimize the threats, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position allows the business to consider several development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution as well, however the development might be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has actually presented certain risks to The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the risk of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP could not be determined. The general monetary performance of the business might be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Help is growing and the company is rather efficient in attracting a large number of consumers at a prospective cost.
Together with it, the second chart which reveals the yearly growth in the The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Analysis overall assets, shows that the business is rather effective in including value to its possessions through its revenues. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis regarding the circulation of overall incomes of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution includes the concerns of environmental communities 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 ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might 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.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the documents presented in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest 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 requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a major concentrate on educational publications. CIP acts as a threat 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 market share of The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as The De Beers Group Exploring The Diamond Reselling Opportunity 2 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 service sections to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an instant service to prevent the declining industry growth. Therefore, intro of digital publishing could show to be an immediate solution with low amount of threat for the company. Nevertheless, the company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to initially collects the information related to the consumer need, the prospective markets, the federal government policies and the information connected to the rivals presented in the market. After that, the company must choose one potential sector for its initial offering. It needs to collect research study that how it might separate its digital publishing from the existing rivals' products. The steps above the business must go for the initial offering. The company should go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a danger to the business's long term presence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
