The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution and Analysis
Intro
The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised numerous questions 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution has specific strengths that can be made use of to minimize the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase restraints for the company in executing its advancement program. The weaknesses of The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, affecting The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution as well, however the development might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has postured specific risks to The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number 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 certain methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be calculated. The overall financial efficiency of the company could be analyzed by using the charts provided in the case Appendices. It might be examined from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution is growing and the company is rather efficient in attracting a a great deal of customers at a possible cost.
Along with it, the second chart which reveals the yearly development in the The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Analysis overall possessions, reveals that the company is quite efficient in adding worth to its possessions through its profits. The development in properties shows that the overall value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the circulation of overall revenues of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the company and the current patterns 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 might have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the total business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are moving 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 etc. Improvement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Analysis includes the issues 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 ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the digital libraries on certain sites. The altering consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
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 competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The De Beers Group Exploring The Diamond Reselling Opportunity Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly 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 Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-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 company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the decreasing market growth. Intro of digital publishing could show to be an immediate service with low amount of risk for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to initially gathers the information associated with the consumer need, the prospective markets, the government guidelines and the data related to the competitors provided in the market. After that, the business should decide one prospective segment for its initial offering. It must collect research that how it might distinguish its digital publishing from the existing competitors' items. After all the steps above the business must opt for the preliminary offering. The company needs to go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a danger to the business's long term presence, but the circumstance can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
