The Dow Acquisition Of Rohm And Haas A 2 Case Study Solution and Analysis
Introduction
The Dow Acquisition Of Rohm And Haas A 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing details and communication services. Significant service sections of the company include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant items include books, periodicals, online media, exhibitions, research reports and so on. The Dow Acquisition Of Rohm And Haas A 2 Case Study Solution has actually ended up being a specialized info service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Dow Acquisition Of Rohm And Haas A 2 Case Study Help has particular strengths that can be utilized to minimize the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position allows the company to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restrictions for the business in implementing its advancement program. The weak points of The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting The Dow Acquisition Of Rohm And Haas A 2 Case Study Solution also, however the development might be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has posed certain threats to The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of The Dow Acquisition Of Rohm And Haas A 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the annual overall profits of The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather effective in attracting a large number of clients at a potential cost.
Along with it, the 2nd chart which reveals the annual development in the The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis overall assets, reveals that the company is rather efficient in including value to its possessions through its earnings. The development in assets reveals that the total worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the circulation of overall profits of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
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 satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Improvement of science and technology along with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis consists of the issues of environmental neighborhoods 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 damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved 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 beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards 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 competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Dow Acquisition Of Rohm And Haas A 2 Case Study Analysis consist of the providers of the paper for releasing 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 buyer in the publishing industry is high. Due to the existence 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 runs in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Dow Acquisition Of Rohm And Haas A 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in numerous market segments, with a significant concentrate on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of The Dow Acquisition Of Rohm And Haas A 2 Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant service to avoid the decreasing market growth. The business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should first collects the data associated with the consumer need, the possible markets, the government regulations and the information associated with the rivals provided in the market. After that, the business ought to choose one prospective section for its preliminary offering. It should gather research study that how it might distinguish its digital publishing from the existing rivals' products. After all the steps above the company ought to go for the initial offering. The business should go for the other markets if the initial offering shows a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a danger to the company's long term existence, but the scenario can be controlled by considering a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
