The Guardian Transition To The Online World 2 Case Study Solution and Analysis
Intro
The Guardian Transition To The Online World 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and The Guardian Transition To The Online World 2 Case Study Help in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities 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 Guardian Transition To The Online World 2 Case Study Help has particular strengths that can be utilized to minimize the risks, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Guardian Transition To The Online World 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong financial position permits the company to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase constraints for the business in implementing its advancement program. The weaknesses of The Guardian Transition To The Online World 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting The Guardian Transition To The Online World 2 Case Study Analysis too, but the development might be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The company 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 decrease its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has presented particular risks to The Guardian Transition To The Online World 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of The Guardian Transition To The Online World 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be determined. Nevertheless, the general monetary performance of the business might be evaluated by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of The Guardian Transition To The Online World 2 Case Study Solution is growing and the company is quite efficient in drawing in a large number of consumers at a prospective rate.
Along with it, the second chart which shows the annual development in the The Guardian Transition To The Online World 2 Case Study Analysis overall properties, shows that the company is rather effective in adding worth to its assets through its earnings. The growth in assets reveals that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis relating to the circulation of overall earnings of the business. 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 could move towards other business segments with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need 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 ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Guardian Transition To The Online World 2 Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence 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. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Guardian Transition To The Online World 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Guardian Transition To The Online World 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an immediate service to avoid the declining industry growth. Therefore, intro of digital publishing could show to be an instant service with low quantity of risk for the company. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should first collects the data related to the customer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a hazard to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
