The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Solution and Analysis
Introduction
The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing info and communication services. Major organisation sections of the company consist of; books, regulars, consultancy and circulation. The business has a vast item portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis has become a specialized details company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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 Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Solution has specific strengths that can be utilized to minimize the threats, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong financial position enables the business to consider numerous development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Help as well, however the growth could be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has posed specific threats to The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence 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 acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP might not be determined. The total financial efficiency of the business might be evaluated by using the graphs provided in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis is growing and the company is quite effective in drawing in a a great deal of clients at a potential rate.
Along with it, the 2nd graph which reveals the annual development in the The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Help total assets, shows that the business is rather efficient in including worth to its assets through its earnings. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis regarding the distribution of total profits of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces impacting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the total service at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Help consists of 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 ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Solution consist of the suppliers of the paper for releasing documents. 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 a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence 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. Major competitors of The Elcer Products Transaction Confidential Information For Rubyfibre Enterprises 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant option to prevent the declining market development. For that reason, intro of digital publishing could prove to be an instant solution with low amount of threat for the company. The business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to initially collects the data related to the customer need, the possible markets, the government policies and the data connected to the rivals provided in the market. After that, the company must choose one prospective sector for its initial offering. It must collect research that how it might separate its digital publishing from the existing competitors' items. The actions above the company must go for the initial offering. If the initial offering proves a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a risk to the business's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The business might consider 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.
