The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Solution and Analysis
Intro
The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Solution in specific. These elements include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Help has specific strengths that can be made use of to lower the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position allows the company to think about several advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase restrictions for the business in executing its development program. The weak points of The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, 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 growth. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Help too, however the development might be revived by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition 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 using its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain dangers to The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the market along with existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual overall incomes of The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a potential price.
Along with it, the second graph which reveals the yearly development in the The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Analysis overall properties, reveals that the business is rather effective in including worth to its assets through its incomes. The growth in properties shows that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the circulation of overall profits of the company. Major part of the revenues of CMP comes 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 development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces impacting The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Analysis business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Help in specific includesthe costs of paper, the earnings level of consumers, 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 economic policies associated with the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor 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 disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the documents provided in the virtual libraries on certain websites. The altering customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Analysis consist of the providers 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 Buyer.
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 buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry 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 rivals of The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on educational publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of The Geography Of Poverty Exploring The Role Of Neighborhoods In The Lives Of Urban Adolescent Poor Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 organisation segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate service to avoid the decreasing market growth. Introduction of digital publishing might show to be an immediate solution with low amount of threat for the business. Nevertheless, the business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must initially collects the information related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, however the situation can be controlled by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
