The Digitization Of Just About Everything Case Study Solution and Analysis
Intro
The Digitization Of Just About Everything Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing info and interaction services. Major company sectors of the company include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its major products include books, regulars, online media, exhibits, research reports etc. The Digitization Of Just About Everything Case Study Solution has become a specialized details company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and The Digitization Of Just About Everything Case Study Solution in particular. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Digitization Of Just About Everything Case Study Analysis has certain strengths that can be utilized to reduce the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Digitization Of Just About Everything Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position enables the business to consider a number of development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of The Digitization Of Just About Everything Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible 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 reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, impacting The Digitization Of Just About Everything Case Study Solution as well, but the growth might be revived by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular threats to The Digitization Of Just About Everything Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of The Digitization Of Just About Everything Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry along with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall incomes of The Digitization Of Just About Everything Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is rather efficient in attracting a large number of customers at a possible rate.
Together with it, the second graph which reveals the yearly growth in the The Digitization Of Just About Everything Case Study Help total properties, reveals that the company is rather efficient in including value to its assets through its revenues. The development in properties shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis concerning the distribution of total profits of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Digitization Of Just About Everything 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 required to be disposable 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 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the digital libraries on particular sites. The changing consumer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Digitization Of Just About Everything Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Digitization Of Just About Everything Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the prominent 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
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments 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 company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the decreasing industry development. Introduction of digital publishing could show to be an immediate option with low quantity of risk for the company. However, the business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially gathers the information connected to the customer demand, the possible markets, the government policies and the data related to the rivals provided in the market. After that, the company must decide one prospective section for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term presence, however the circumstance can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
