The Dow Acquisition Of Rohm And Haas A Case Study Solution and Analysis
Introduction
The Dow Acquisition Of Rohm And Haas A Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and The Dow Acquisition Of Rohm And Haas A Case Study Solution in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Dow Acquisition Of Rohm And Haas A Case Study Help has particular strengths that can be utilized to minimize the dangers, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Dow Acquisition Of Rohm And Haas A Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong monetary position permits the company to consider numerous development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of The Dow Acquisition Of Rohm And Haas A Case Study Analysis are provided as follows;
• Despite of being a science and technology 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 development. It should propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, impacting The Dow Acquisition Of Rohm And Haas A Case Study Help too, but the growth might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has presented certain hazards to The Dow Acquisition Of Rohm And Haas A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of The Dow Acquisition Of Rohm And Haas A Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market along with presence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be determined. The general financial efficiency of the company might be evaluated by using the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of The Dow Acquisition Of Rohm And Haas A Case Study Solution is growing and the business is quite efficient in attracting a large number of consumers at a possible rate.
Together with it, the 2nd graph which shows the annual growth in the The Dow Acquisition Of Rohm And Haas A Case Study Analysis overall properties, reveals that the company is quite efficient in adding worth to its possessions through its revenues. The growth in properties shows that the total value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis relating to the distribution of overall profits of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the efficiency of the company and the current 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 might have a significant influence 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 directed by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the The Dow Acquisition Of Rohm And Haas A Case Study Help in specific includesthe rates 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. Along with it, the economic policies connected to the import of books impact the total business at CPM. China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Dow Acquisition Of Rohm And Haas A Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Dow Acquisition Of Rohm And Haas A Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Dow Acquisition Of Rohm And Haas A Case Study Solution include;.
• Chemical Market 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 might wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential 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 using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining market growth. The business could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first collects the data connected to the consumer need, the potential markets, the government regulations and the data related to the competitors presented in the market. After that, the business should choose one possible sector for its preliminary offering. It ought to gather research that how it could distinguish its digital publishing from the existing competitors' products. The actions above the business must go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a danger to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
