The Freelancers Union B Case Study Solution and Analysis
Intro
The Freelancers Union B Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing info and interaction services. Major company segments of the company include; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. The Freelancers Union B Case Study Help has ended up being a specialized info provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, The Freelancers Union B Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction 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 situation? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Freelancers Union B Case Study Analysis 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 provided as follows;
• The long term experience of The Freelancers Union B Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position permits the company to think about a number of development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase restraints for the company in executing its development program. The weaknesses of The Freelancers Union B Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting The Freelancers Union B Case Study Help too, but the growth could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned specific dangers to The Freelancers Union B Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of The Freelancers Union B Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals 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 certain techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be computed. However, the total monetary efficiency of the business could be analyzed by utilizing the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of The Freelancers Union B Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of clients at a prospective cost.
Together with it, the 2nd graph which shows the yearly development in the The Freelancers Union B Case Study Help total assets, shows that the company is quite effective in including worth to its properties through its incomes. The development in possessions shows that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis concerning the distribution of overall revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the company and the recent trends 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 substantial influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces impacting The Freelancers Union B Case Study Solution business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Freelancers Union B Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the files presented in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Freelancers Union B Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly 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. Significant competitors of The Freelancers Union B Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market sectors, with a significant concentrate on educational publications. CIP acts as a hazard 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 B Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among 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
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the declining industry development. Therefore, introduction of digital publishing might prove to be an instant solution with low quantity of threat for the business. However, the company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer need, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a hazard to the business's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
