The Double Bottom Line Profit And Social Benefit Case Study Solution and Analysis
Intro
The Double Bottom Line Profit And Social Benefit Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering information, processing details and interaction services. Major company sectors of the business consist of; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major items include books, periodicals, online media, exhibitions, research study reports and so on. The Double Bottom Line Profit And Social Benefit Case Study Analysis has actually become a specialized details supplier and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and The Double Bottom Line Profit And Social Benefit Case Study Help in specific. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change 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 valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Double Bottom Line Profit And Social Benefit Case Study Help has certain strengths that can be used to lower the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Double Bottom Line Profit And Social Benefit Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to think about numerous development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of The Double Bottom Line Profit And Social Benefit Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining since 2008, impacting The Double Bottom Line Profit And Social Benefit Case Study Help as well, but the development could be restored by availing specific chances presented in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has postured specific hazards to The Double Bottom Line Profit And Social Benefit Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of The Double Bottom Line Profit And Social Benefit Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry together with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. However, the total financial performance of the company might be examined by using the graphs given up the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Double Bottom Line Profit And Social Benefit Case Study Analysis is growing and the company is quite effective in drawing in a large number of consumers at a prospective price.
In addition to it, the second chart which reveals the annual development in the The Double Bottom Line Profit And Social Benefit Case Study Help overall properties, shows that the company is quite effective in adding value to its properties through its earnings. The development in assets shows that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the circulation of overall revenues of the company. Huge part of the profits 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 business segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful materials etc. China has the highest population on the planet with a high population development, showing the increasing variety of consumers of the The Double Bottom Line Profit And Social Benefit Case Study Analysis. Nevertheless, the customer 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 customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The Double Bottom Line Profit And Social Benefit Case Study Help consists of the issues of environmental 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Double Bottom Line Profit And Social Benefit Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Double Bottom Line Profit And Social Benefit Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a major concentrate on academic publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of The Double Bottom Line Profit And Social Benefit Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as The Double Bottom Line Profit And Social Benefit Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market 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 Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate option to avoid the decreasing market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the customer demand, the potential markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a risk to the company's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
