The Energy Foundation 2 Case Study Solution and Analysis
Introduction
The Energy Foundation 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, The Energy Foundation 2 Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
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 company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Energy Foundation 2 Case Study Help has certain strengths that can be made use of to lower the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Energy Foundation 2 Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong monetary position enables the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of The Energy Foundation 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, impacting The Energy Foundation 2 Case Study Analysis also, however the growth could be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned particular hazards to The Energy Foundation 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The Energy Foundation 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total incomes of The Energy Foundation 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is rather efficient in bring in a big number of customers at a prospective cost.
Along with it, the second graph which reveals the annual growth in the The Energy Foundation 2 Case Study Help total assets, shows that the company is rather efficient in including value to its possessions through its profits. The development in assets shows that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis regarding the distribution of overall revenues of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame 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 Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces impacting The Energy Foundation 2 Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting The Energy Foundation 2 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Energy Foundation 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs 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 rivals of The Energy Foundation 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Energy Foundation 2 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the 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 business require an immediate service to avoid the declining market growth. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must initially collects the information related to the customer demand, 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 possible sector for its preliminary offering. It ought to collect research study that how it could separate its digital publishing from the existing rivals' items. The steps above the company need to go for the preliminary offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a danger to the company's long term presence, but the scenario can be controlled by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
