The K Dow Petrochemicals Joint Venture Case Study Solution and Analysis
Introduction
The K Dow Petrochemicals Joint Venture Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering information, processing information and communication services. Major business sectors of the business include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports and so on. The K Dow Petrochemicals Joint Venture Case Study Solution has become a specialized info service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and The K Dow Petrochemicals Joint Venture Case Study Solution in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change 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 capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The K Dow Petrochemicals Joint Venture Case Study Help has certain strengths that can be utilized to lower the hazards, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The K Dow Petrochemicals Joint Venture Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position permits the business to consider a number of development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase restraints for the business in executing its development program. The weaknesses of The K Dow Petrochemicals Joint Venture Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting The K Dow Petrochemicals Joint Venture Case Study Solution as well, however the development could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has presented specific risks to The K Dow Petrochemicals Joint Venture Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of The K Dow Petrochemicals Joint Venture Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be calculated. Nevertheless, the overall monetary performance of the business could be analyzed by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of The K Dow Petrochemicals Joint Venture Case Study Analysis is growing and the business is rather efficient in bring in a a great deal of clients at a possible rate.
Together with it, the 2nd chart which shows the yearly development in the The K Dow Petrochemicals Joint Venture Case Study Analysis overall properties, shows that the company is rather effective in including worth to its assets through its profits. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis regarding the circulation of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting The K Dow Petrochemicals Joint Venture Case Study Help company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products and so on. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the The K Dow Petrochemicals Joint Venture Case Study Solution. However, the customer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The K Dow Petrochemicals Joint Venture Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the digital libraries on certain sites. The changing customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The K Dow Petrochemicals Joint Venture Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The K Dow Petrochemicals Joint Venture Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an instant solution to avoid the declining industry development. Therefore, intro of digital publishing might prove to be an immediate option with low amount of danger for the business. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the information related to the customer need, the potential markets, the government policies and the data connected to the competitors provided in the market. After that, the business must choose one potential segment for its initial offering. It should collect research study that how it might distinguish its digital publishing from the existing rivals' products. The actions above the business ought to go for the preliminary offering. If the initial offering proves a success, the business ought to choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a hazard to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
