The Gold Story 2 Case Study Solution and Analysis
Introduction
The Gold Story 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and The Gold Story 2 Case Study Analysis in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Gold Story 2 Case Study Solution has certain strengths that can be used to reduce the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Gold Story 2 Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position allows the business to think about several development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weak points which could increase restrictions for the company in implementing its development program. The weaknesses of The Gold Story 2 Case Study Analysis 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 highly relies over the Chinese markets for its development. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining given that 2008, affecting The Gold Story 2 Case Study Solution as well, but the growth could be revived by availing particular chances presented in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented specific dangers to The Gold Story 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of The Gold Story 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly total incomes of The Gold Story 2 Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite effective in bring in a large number of customers at a potential price.
Along with it, the 2nd graph which shows the yearly development in the The Gold Story 2 Case Study Solution total possessions, reveals that the business is rather effective in adding value to its assets through its revenues. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the distribution of total earnings of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting The Gold Story 2 Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out informative products etc. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the The Gold Story 2 Case Study Help. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting The Gold Story 2 Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought 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 gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Gold Story 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Gold Story 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate service to prevent the decreasing industry growth. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the consumer need, the possible markets, the government policies and the data related to the rivals presented in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a danger to the company's long term presence, however the scenario can be managed by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
