The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Solution and Analysis
Intro
The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Analysis in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be used 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 Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Help has certain strengths that can be utilized to minimize the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position enables the business to consider numerous advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in executing its development program. The weaknesses of The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Analysis also, but the growth might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has positioned certain risks to The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities 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 competitors can gain a strong customer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The overall monetary performance of the company might be analyzed by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Solution is growing and the company is rather effective in attracting a large number of consumers at a prospective cost.
In addition to it, the second chart which reveals the annual development in the The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Help overall properties, reveals that the business is quite efficient in including value to its possessions through its earnings. The development in assets reveals that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the distribution of overall earnings of the business. Major part of the earnings 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 organisation sections with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the business and the recent patterns 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 substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful products and so on. China has the highest population on the planet with a high population development, showing the increasing variety of consumers of the The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Help. However, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable 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 policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the documents provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on academic publications. CIP acts as a hazard 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 The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as The Information Superhighway Meets The Highway Technology And Mobility Trends And Opportunities Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. The company could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first gathers the data connected to the consumer demand, the prospective markets, the government policies and the information associated with the rivals presented in the market. After that, the company should decide one potential segment for its preliminary offering. It must collect research that how it could differentiate its digital publishing from the existing rivals' products. The steps above the business need to go for the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a hazard to the company's long term existence, but the situation can be managed by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
