The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution and Analysis
Introduction
The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting information, processing info and interaction services. Significant business sectors of the company include; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports and so on. The Great Recession 2007 2010 Causes And Consequences 2 Case Study Analysis has actually ended up being a specialized information company and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, The Great Recession 2007 2010 Causes And Consequences 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions 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 capabilities of the business could be made use of 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 Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution has certain strengths that can be used to decrease the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Great Recession 2007 2010 Causes And Consequences 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which could increase constraints for the company in executing its advancement program. The weak points of The Great Recession 2007 2010 Causes And Consequences 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting The Great Recession 2007 2010 Causes And Consequences 2 Case Study Help as well, however the development might be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client 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 large financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually presented specific threats to The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution due to the consumer 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 competitors can acquire a strong customer base by using specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly total incomes of The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite efficient in drawing in a big number of customers at a potential price.
In addition to it, the second graph which shows the annual growth in the The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution overall properties, reveals that the company is quite effective in including worth to its possessions through its incomes. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the circulation of total incomes of the business. Major part of the profits of CMP comes 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 potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Great Recession 2007 2010 Causes And Consequences 2 Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized 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. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Great Recession 2007 2010 Causes And Consequences 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a significant focus on educational publications. CIP functions 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 The Great Recession 2007 2010 Causes And Consequences 2 Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing industry growth. Therefore, introduction of digital publishing could show to be an instant solution with low amount of threat for the business. Nevertheless, the business could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must initially collects the information associated with the customer demand, the possible markets, the government guidelines and the data related to the rivals provided in the market. After that, the company ought to decide one potential section for its initial offering. It must collect research that how it could separate its digital publishing from the existing rivals' products. The actions above the business should go for the initial offering. The business should go for the other markets if the preliminary offering shows a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, 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 thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
