The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution and Analysis
Intro
The Greek Crisis Tragedy Or Opportunity 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details company and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Greek Crisis Tragedy Or Opportunity 2 Case Study Analysis has specific strengths that can be used to reduce the dangers, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong monetary position permits the business to think about several development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weak points of The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution are offered as follows;
• Despite of being a science and technology 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 growth. It needs to propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution as well, however the growth might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular risks to The Greek Crisis Tragedy Or Opportunity 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP might not be determined. The total financial efficiency of the business might be analyzed by using the charts provided in the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution is growing and the company is rather efficient in attracting a a great deal of clients at a prospective cost.
Together with it, the second graph which reveals the annual development in the The Greek Crisis Tragedy Or Opportunity 2 Case Study Help overall assets, shows that the business is rather effective in adding worth to its assets through its incomes. The growth in assets shows that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis regarding the circulation of total revenues of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces affecting the performance 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 frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products and so on. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Greek Crisis Tragedy Or Opportunity 2 Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry 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. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Greek Crisis Tragedy Or Opportunity 2 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Greek Crisis Tragedy Or Opportunity 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a significant concentrate on educational publications. CIP functions as a danger for CMP as it could 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 Greek Crisis Tragedy Or Opportunity 2 Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The Greek Crisis Tragedy Or Opportunity 2 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 service segments to the new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the declining industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to initially gathers the data related to the customer need, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
