The Family Council Organization And Function Case Study Solution and Analysis
Introduction
The Family Council Organization And Function Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Family Council Organization And Function Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Family Council Organization And Function Case Study Help has certain strengths that can be made use of to decrease the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Family Council Organization And Function Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its previous 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 danger and offer high value to its clients.
• Strong financial position enables the business to consider several advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of The Family Council Organization And Function Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining because 2008, affecting The Family Council Organization And Function Case Study Help as well, but the growth might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition 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 funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned specific dangers to The Family Council Organization And Function Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The Family Council Organization And Function 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 danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly total earnings of The Family Council Organization And Function Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is quite efficient in attracting a large number of customers at a potential rate.
In addition to it, the 2nd chart which shows the yearly growth in the The Family Council Organization And Function Case Study Help overall possessions, shows that the business is rather efficient in adding value to its properties through its profits. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the circulation of total profits of the company. Huge 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 business might move towards other organisation sections with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting The Family Council Organization And Function Case Study Help business are high. The 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 Family Council Organization And Function Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market. Along with it, the economic policies related to the import of books affect the general company at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative materials etc. China has the greatest population in the world with a high population growth, showing the increasing number of customers of the The Family Council Organization And Function Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Family Council Organization And Function Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed 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. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Family Council Organization And Function Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number 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 Family Council Organization And Function Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in different market sections, with a significant focus on instructional publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of The Family Council Organization And Function Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant option to prevent the declining market development. Introduction of digital publishing could show to be an instant service with low amount of risk for the business. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must initially collects the data related to the customer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company should 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 market is declining since 2008, revealing a threat to the business's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
