The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution and Analysis
Introduction
The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing info and interaction services. Significant organisation sections of the business consist of; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Help has ended up being a specialized information supplier and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous 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 company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution has specific strengths that can be used to reduce the threats, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong financial position allows the company to think about a number of development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which could increase restraints for the business in executing its development program. The weak points of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution as well, however the growth might be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned certain hazards to The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence 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 acquire a strong customer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. The total monetary efficiency of the business might be analyzed by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Analysis is growing and the company is rather efficient in drawing in a large number of clients at a possible price.
In addition to it, the second chart which reveals the yearly development in the The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution overall possessions, shows that the business is quite efficient in adding worth to its properties through its earnings. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis relating to the distribution of total incomes of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the financial policies connected to the import of books affect the overall service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as The Impact Of Illegal Peer To Peer File Sharing On The Media Industry 2 Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the decreasing industry growth. For that reason, intro of digital publishing could prove to be an instant option with low quantity of danger for the company. However, the business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer need, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
