The Freelancers Union B Case Study Solution and Analysis
The Freelancers Union B Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and interaction services. Significant service sections of the business include; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major products include books, periodicals, online media, exhibitions, research reports etc. The Freelancers Union B Case Study Analysis has actually ended up being a specialized info company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and The Freelancers Union B Case Study Solution in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 circumstance? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
The Freelancers Union B Case Study Help has particular strengths that can be used to minimize the threats, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Freelancers Union B Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position permits the company to think about a number of development opportunities with no fear of raising fund externally.
Together with the strengths, the business has specific weak points which could increase restrictions for the company in implementing its advancement program. The weak points of The Freelancers Union B Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
The growth of the publishing market is decreasing since 2008, impacting The Freelancers Union B Case Study Solution as well, however the development could be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed specific hazards to The Freelancers Union B Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of The Freelancers Union B Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the danger of losing the client base.
The company has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be computed. Nevertheless, the general monetary performance of the company might be examined by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of The Freelancers Union B Case Study Help is growing and the company is rather efficient in bring in a large number of clients at a prospective price.
Together with it, the 2nd graph which reveals the yearly development in the The Freelancers Union B Case Study Analysis total possessions, shows that the business is quite effective in including worth to its possessions through its profits. The development in possessions shows that the total worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis concerning the distribution of total earnings of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a prospective development to attain its future advancement objective.
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces impacting The Freelancers Union B Case Study Solution company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the The Freelancers Union B Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the overall company at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer choices are shifting 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 forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting The Freelancers Union B Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved 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 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Freelancers Union B Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Freelancers Union B Case Study Analysis include;.
• Chemical Industry 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 circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as The Freelancers Union B Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market growth. The business could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially collects the data associated with the customer demand, the prospective markets, the federal government guidelines and the information associated with the competitors presented in the market. After that, the company should choose one potential segment for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing rivals' items. The actions above the company need to go for the preliminary offering. If the initial offering shows a success, the company ought to opt for the other markets. In this method the company would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is declining considering that 2008, showing a hazard to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.