The K Dow Petrochemicals Joint Venture 2 Case Study Solution and Analysis
Introduction
The K Dow Petrochemicals Joint Venture 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, The K Dow Petrochemicals Joint Venture 2 Case Study Help has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in particular. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be used 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 K Dow Petrochemicals Joint Venture 2 Case Study Help has specific strengths that can be made use of to decrease the dangers, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The K Dow Petrochemicals Joint Venture 2 Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position permits the business to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its development program. The weak points of The K Dow Petrochemicals Joint Venture 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting The K Dow Petrochemicals Joint Venture 2 Case Study Solution as well, but the growth could be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has postured certain risks to The K Dow Petrochemicals Joint Venture 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of The K Dow Petrochemicals Joint Venture 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual total profits of The K Dow Petrochemicals Joint Venture 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite effective in bring in a big number of customers at a potential cost.
Together with it, the second chart which shows the annual development in the The K Dow Petrochemicals Joint Venture 2 Case Study Analysis overall possessions, reveals that the company is rather efficient in adding worth to its possessions through its incomes. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis regarding the circulation of total profits of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand 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 should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting The K Dow Petrochemicals Joint Venture 2 Case Study Analysis consists of the concerns of ecological 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 must not be harmful 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 entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on certain sites. The altering customer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The K Dow Petrochemicals Joint Venture 2 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The K Dow Petrochemicals Joint Venture 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market segments, with a significant focus on instructional publications. CIP serves as a threat 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 marketplace share of The K Dow Petrochemicals Joint Venture 2 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 service sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate service to avoid the decreasing market growth. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business ought to first collects the information connected to the consumer demand, the prospective markets, the federal government policies and the information associated with the rivals presented in the market. After that, the business needs to decide one potential section for its initial offering. It needs to collect research study that how it could separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the initial offering. If the initial offering shows a success, the business needs to 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 market is declining given that 2008, revealing a hazard to the company's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
