The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Solution and Analysis
Intro
The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing info and interaction services. Significant company segments of the company consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports and so on. The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help has ended up being a specialized info company and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions 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 abilities of the business could be utilized to pursue the future development 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 Case Study Analysis has specific strengths that can be used to reduce the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the company to think about a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which could increase restrictions for the company in executing its development program. The weaknesses of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help as well, however the development could be restored by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually postured specific dangers to The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry together with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be calculated. The total monetary performance of the company might be examined by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help is growing and the company is rather effective in drawing in a a great deal of consumers at a possible cost.
In addition to it, the 2nd graph which shows the annual development in the The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Analysis total properties, reveals that the company is rather effective in adding worth to its properties through its profits. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall revenues of the business. Major 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 company could move towards other organisation sections with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks third and second in various market segments, with a major focus on instructional publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as The Impact Of Illegal Peer To Peer File Sharing On The Media Industry Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the declining market development. Therefore, introduction of digital publishing might prove to be an immediate service with low quantity of risk for the company. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information related to the customer demand, the possible markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a danger to the company's long term existence, but the scenario can be controlled by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
