The Freelancers Union A Case Study Solution and Analysis
Introduction
The Freelancers Union A Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and The Freelancers Union A Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of 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 abilities of the business could be made use of 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 Freelancers Union A Case Study Analysis has particular strengths that can be utilized to decrease the threats, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Freelancers Union A Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to consider several advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restrictions for the business in executing its advancement program. The weaknesses of The Freelancers Union A Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting The Freelancers Union A Case Study Analysis as well, however the growth could be revived by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed specific dangers to The Freelancers Union A Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of The Freelancers Union A Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market along with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual overall incomes of The Freelancers Union A Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is quite effective in drawing in a big number of customers at a prospective cost.
Along with it, the 2nd graph which shows the yearly development in the The Freelancers Union A Case Study Solution total possessions, shows that the business is quite effective in adding value to its properties through its incomes. The development in properties shows that the overall value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the distribution of overall incomes of the company. Major part of the earnings 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 sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the The Freelancers Union A Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The Freelancers Union A Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Freelancers Union A Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Freelancers Union A Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a significant focus on instructional publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of The Freelancers Union A Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The Freelancers Union A Case Study Solution and CIP. It is also one of the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant service to avoid the decreasing industry growth. 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 business ought to initially collects the data associated with the consumer need, the potential markets, the government guidelines and the information connected to the competitors provided in the market. After that, the business needs to decide one possible sector for its initial offering. It should collect research that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the company must go for the initial offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a risk to the business's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
