The Itc Echoupal Initiative 3 Case Study Solution and Analysis
Introduction
The Itc Echoupal Initiative 3 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and The Itc Echoupal Initiative 3 Case Study Solution in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several concerns 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 abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Itc Echoupal Initiative 3 Case Study Analysis has specific strengths that can be made use of to minimize the threats, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Itc Echoupal Initiative 3 Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the company to consider a number of advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of The Itc Echoupal Initiative 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting The Itc Echoupal Initiative 3 Case Study Solution as well, however the growth might be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has positioned particular threats to The Itc Echoupal Initiative 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of The Itc Echoupal Initiative 3 Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly total profits of The Itc Echoupal Initiative 3 Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in bring in a large number of customers at a prospective price.
Along with it, the second graph which reveals the yearly growth in the The Itc Echoupal Initiative 3 Case Study Help overall assets, shows that the business is rather effective in including worth to its possessions through its earnings. The growth in assets reveals that the overall value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information might be the analysis concerning the distribution of overall incomes of the business. Major part of the revenues 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 sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting The Itc Echoupal Initiative 3 Case Study Solution organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional 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 consist of the technological advancement in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Itc Echoupal Initiative 3 Case Study Help consists of the issues of environmental neighborhoods 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market 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 rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Itc Echoupal Initiative 3 Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Itc Echoupal Initiative 3 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry 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 instant option to avoid the declining industry growth. Therefore, intro of digital publishing could show to be an instant service with low amount of danger for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should initially collects the information related to the consumer need, the possible markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
