The Dow Acquisition Of Rohn And Haas C 2 Case Study Solution and Analysis
Intro
The Dow Acquisition Of Rohn And Haas C 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, The Dow Acquisition Of Rohn And Haas C 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing market in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Dow Acquisition Of Rohn And Haas C 2 Case Study Solution has specific strengths that can be utilized to lower the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Dow Acquisition Of Rohn And Haas C 2 Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position allows the company to think about numerous development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which might increase constraints for the company in executing its advancement program. The weak points of The Dow Acquisition Of Rohn And Haas C 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing because 2008, affecting The Dow Acquisition Of Rohn And Haas C 2 Case Study Analysis as well, but the development might be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular risks to The Dow Acquisition Of Rohn And Haas C 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of The Dow Acquisition Of Rohn And Haas C 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly total revenues of The Dow Acquisition Of Rohn And Haas C 2 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite effective in bring in a large number of consumers at a prospective rate.
Along with it, the second graph which reveals the yearly development in the The Dow Acquisition Of Rohn And Haas C 2 Case Study Analysis total assets, reveals that the business is quite efficient in including value to its properties through its profits. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis concerning the circulation of total earnings of the business. Major 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 prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the The Dow Acquisition Of Rohn And Haas C 2 Case Study Help in particular includesthe costs of paper, the income 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. In addition to it, the financial policies connected to the import of books impact the total business at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Dow Acquisition Of Rohn And Haas C 2 Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper used 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. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Dow Acquisition Of Rohn And Haas C 2 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Dow Acquisition Of Rohn And Haas C 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in different market sectors, with a major concentrate on academic publications. CIP acts 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 could wean the marketplace share of The Dow Acquisition Of Rohn And Haas C 2 Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding 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 consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 organisation sections to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate service to avoid the declining industry growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should first gathers the data related to the consumer need, the possible markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a threat to the company's long term existence, but the scenario can be managed by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
