The Greek Crisis Tragedy Or Opportunity Case Study Solution and Analysis
The Greek Crisis Tragedy Or Opportunity Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing info and interaction services. Significant service sections of the company consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major products include books, periodicals, online media, exhibitions, research reports etc. The Greek Crisis Tragedy Or Opportunity Case Study Analysis has ended up being a specialized information service provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, The Greek Crisis Tragedy Or Opportunity Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation 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 important experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
The Greek Crisis Tragedy Or Opportunity Case Study Solution has specific strengths that can be used to minimize the threats, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Greek Crisis Tragedy Or Opportunity Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong financial position permits the company to consider several advancement opportunities without any fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of The Greek Crisis Tragedy Or Opportunity 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 needs to propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
The growth of the publishing market is declining since 2008, impacting The Greek Crisis Tragedy Or Opportunity Case Study Help as well, but the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competition in the publishing market has actually postured certain dangers to The Greek Crisis Tragedy Or Opportunity Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Greek Crisis Tragedy Or Opportunity 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 acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the hazard of losing the client base.
Due to lack of information, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual total earnings of The Greek Crisis Tragedy Or Opportunity Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a big number of clients at a potential rate.
Along with it, the second graph which shows the yearly growth in the The Greek Crisis Tragedy Or Opportunity Case Study Solution total possessions, shows that the business is quite efficient in adding value to its possessions through its revenues. The growth in assets reveals that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the distribution of total profits of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a potential growth to accomplish its future advancement goal.
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the The Greek Crisis Tragedy Or Opportunity Case Study Help in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental forces impacting The Greek Crisis Tragedy Or Opportunity Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the files presented in the digital libraries on certain websites. The altering customer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive competition in the publishing industry is high. The presence 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, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Greek Crisis Tragedy Or Opportunity Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. The company 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 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as The Greek Crisis Tragedy Or Opportunity Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an immediate solution to avoid the declining market development. Therefore, intro of digital publishing might show to be an instant option with low amount of risk for the company. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first gathers the information related to the consumer need, the possible markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, showing a risk to the company's long term presence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.