The Great Recession 2007 2010 Causes And Consequences Case Study Solution and Analysis
Intro
The Great Recession 2007 2010 Causes And Consequences Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details company and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and The Great Recession 2007 2010 Causes And Consequences Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of 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 strive for the future advancement 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 Case Study Analysis has specific strengths that can be utilized to decrease the hazards, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Great Recession 2007 2010 Causes And Consequences Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the company to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase restraints for the business in implementing its advancement program. The weak points of The Great Recession 2007 2010 Causes And Consequences Case Study Analysis are given as follows;
• Despite of being a science and technology 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 growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting The Great Recession 2007 2010 Causes And Consequences Case Study Solution as well, however the growth could be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed particular risks to The Great Recession 2007 2010 Causes And Consequences Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of The Great Recession 2007 2010 Causes And Consequences Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market together with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual total earnings of The Great Recession 2007 2010 Causes And Consequences Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather effective in drawing in a big number of customers at a potential cost.
Along with it, the second chart which reveals the yearly development in the The Great Recession 2007 2010 Causes And Consequences Case Study Solution total properties, shows that the business is rather effective in including worth to its assets through its revenues. The development in possessions shows that the overall value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the circulation of total incomes of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting The Great Recession 2007 2010 Causes And Consequences Case Study Help business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the The Great Recession 2007 2010 Causes And Consequences Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the total business at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the The Great Recession 2007 2010 Causes And Consequences Case Study Analysis. Nevertheless, the customer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology together with the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting The Great Recession 2007 2010 Causes And Consequences Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the virtual libraries on particular sites. The changing customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Great Recession 2007 2010 Causes And Consequences Case Study Help consist of the providers of the paper for releasing documents. 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 Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Great Recession 2007 2010 Causes And Consequences 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. Founded in the very same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a significant focus on academic publications. CIP serves 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 market share of The Great Recession 2007 2010 Causes And Consequences Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant option to avoid the declining industry development. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to first gathers the information associated with the consumer need, the potential markets, the government guidelines and the data connected to the rivals provided in the market. After that, the business ought to choose one potential segment for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. If the initial offering shows a success, the company ought to opt for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
