The Electric Automotive Industry In 2013 Case Study Solution and Analysis
Intro
The Electric Automotive Industry In 2013 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing information and interaction services. Significant organisation sections of the business include; books, regulars, consultancy and circulation. The company has a large item portfolio and its major items include books, periodicals, online media, exhibits, research study reports and so on. The Electric Automotive Industry In 2013 Case Study Analysis has 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.
Important Problems
Although, The Electric Automotive Industry In 2013 Case Study Solution 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 specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of 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 Electric Automotive Industry In 2013 Case Study Analysis has specific strengths that can be used to minimize the risks, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Electric Automotive Industry In 2013 Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position permits the business to consider a number of advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restrictions for the business in implementing its development program. The weak points of The Electric Automotive Industry In 2013 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company 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 particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting The Electric Automotive Industry In 2013 Case Study Help as well, but the growth could be revived by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has positioned certain risks to The Electric Automotive Industry In 2013 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of The Electric Automotive Industry In 2013 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual overall revenues of The Electric Automotive Industry In 2013 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is rather efficient in drawing in a large number of consumers at a possible price.
Together with it, the 2nd graph which reveals the annual growth in the The Electric Automotive Industry In 2013 Case Study Help overall possessions, shows that the company is rather effective in adding value to its possessions through its incomes. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis relating to the circulation of total profits of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful materials etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of customers of the The Electric Automotive Industry In 2013 Case Study Solution. However, the consumer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Electric Automotive Industry In 2013 Case Study Analysis consists of the concerns of environmental communities over the usage 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 policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Electric Automotive Industry In 2013 Case Study Help 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 general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Electric Automotive Industry In 2013 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as The Electric Automotive Industry In 2013 Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant solution to avoid the declining market growth. The business might also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the information related to the consumer need, the prospective markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the business ought to decide one potential sector for its preliminary offering. It needs to collect research study that how it could distinguish its digital publishing from the existing rivals' items. The steps above the business need to go for the initial offering. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, revealing a danger to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
