The Good Commissioner A 2 Case Study Solution and Analysis
Introduction
The Good Commissioner A 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and The Good Commissioner A 2 Case Study Solution in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Good Commissioner A 2 Case Study Help has certain strengths that can be made use of to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Good Commissioner A 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position permits the business to consider numerous advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase constraints for the company in executing its development program. The weak points of The Good Commissioner A 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, impacting The Good Commissioner A 2 Case Study Help too, but the growth might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has presented particular risks to The Good Commissioner A 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of The Good Commissioner A 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total revenues of The Good Commissioner A 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite effective in bring in a big number of clients at a possible cost.
Together with it, the second chart which shows the annual growth in the The Good Commissioner A 2 Case Study Solution total assets, shows that the business is quite effective in adding value to its possessions through its revenues. The development in properties shows that the total value of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the distribution of total revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting The Good Commissioner A 2 Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the The Good Commissioner A 2 Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the overall business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of consumers of the The Good Commissioner A 2 Case Study Help. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The Good Commissioner A 2 Case Study Solution includes the concerns of environmental neighborhoods 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement 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 analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the digital libraries on specific websites. The altering consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Good Commissioner A 2 Case Study Solution include the providers of the paper for publishing 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 Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Good Commissioner A 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors 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 business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an instant option to prevent the declining industry development. For that reason, intro of digital publishing might prove to be an immediate option with low amount of danger for the business. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first gathers the data related to the consumer demand, the prospective markets, the federal government policies and the information connected to the rivals presented in the market. After that, the company should decide one prospective section for its initial offering. It needs to collect research that how it could distinguish its digital publishing from the existing rivals' items. The actions above the company should go for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a hazard to the company's long term presence, but the situation can be controlled by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
