The Freelancers Union B 2 Case Study Solution and Analysis
Introduction
The Freelancers Union B 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and The Freelancers Union B 2 Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• 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 important experience, technical resources and the abilities 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 Freelancers Union B 2 Case Study Analysis has certain strengths that can be utilized to minimize the risks, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Freelancers Union B 2 Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the company to think about several advancement chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase constraints for the company in executing its advancement program. The weak points of The Freelancers Union B 2 Case Study Analysis are provided 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 extremely relies over the Chinese markets for its development. It needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting The Freelancers Union B 2 Case Study Solution as well, however the development might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned particular risks to The Freelancers Union B 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of The Freelancers Union B 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly overall earnings of The Freelancers Union B 2 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in drawing in a big number of clients at a prospective rate.
Together with it, the second chart which shows the annual development in the The Freelancers Union B 2 Case Study Help overall possessions, shows that the company is rather efficient in adding value to its assets through its profits. The growth in properties shows that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of overall revenues of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind 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 Celebration of China. For that reason, it could be said that the overall political forces affecting The Freelancers Union B 2 Case Study Solution business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the The Freelancers Union B 2 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the overall company at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful products and so on. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the The Freelancers Union B 2 Case Study Help. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Freelancers Union B 2 Case Study Solution includes the concerns of environmental neighborhoods 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 should 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 controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files provided in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Freelancers Union B 2 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Freelancers Union B 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 likewise established in the exact same period as The Freelancers Union B 2 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective 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 current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant solution to prevent the decreasing market development. The company could also consider 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 gathers the information related to the consumer need, the prospective markets, the government regulations and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing 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 could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
