The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Solution and Analysis
Introduction
The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing details and interaction services. Major company sections of the business consist of; books, periodicals, consultancy and circulation. The business has a large product portfolio and its significant products include books, periodicals, online media, exhibits, research reports and so on. The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help has ended up being a specialized information supplier and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing market in basic and The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Solution in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help has certain strengths that can be made use of to reduce the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the company to think about several development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase constraints for the company in executing its development program. The weak points of The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining because 2008, affecting The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Solution as well, however the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has positioned specific hazards to The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry along with presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be computed. The total financial performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Analysis is growing and the business is rather effective in attracting a a great deal of consumers at a prospective cost.
In addition to it, the second graph which shows the yearly growth in the The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Solution overall assets, shows that the company is quite efficient in including value to its possessions through its profits. The growth in assets shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis concerning the distribution of total profits of the business. Major 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 company could move towards other organisation sectors with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the total political forces impacting The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading informative materials etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of consumers of the The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files presented in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Elcer Products Transaction Confidential Information For Elcer Products Division President 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
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 brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant option to prevent the declining industry development. The business might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to first collects the data connected to the customer need, the prospective markets, the government policies and the information related to the rivals presented in the market. After that, the business ought to choose one potential sector for its preliminary offering. It must gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the business must go for the initial offering. The business ought to go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, showing a threat to the company's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
