The K Dow Petrochemicals Joint Venture Case Study Solution and Analysis
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 has actually become a specialized information service provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, The K Dow Petrochemicals Joint Venture Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change 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 important experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
The K Dow Petrochemicals Joint Venture Case Study Help has certain strengths that can be made use of to decrease the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The K Dow Petrochemicals Joint Venture Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position allows the business to think about several advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of The K Dow Petrochemicals Joint Venture Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is decreasing because 2008, impacting The K Dow Petrochemicals Joint Venture Case Study Solution as well, however the development could be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also 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 growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competition in the publishing industry has posed specific dangers to The K Dow Petrochemicals Joint Venture Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of The K Dow Petrochemicals Joint Venture Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the client base.
Due to absence of information, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly total incomes of The K Dow Petrochemicals Joint Venture Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a large number of clients at a prospective rate.
Along with it, the second chart which shows the annual development in the The K Dow Petrochemicals Joint Venture Case Study Solution overall possessions, shows that the business is rather effective in adding worth to its assets through its revenues. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis regarding the circulation of overall incomes of the company. Major 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 possible growth to achieve its future advancement goal.
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the The K Dow Petrochemicals Joint Venture Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies connected to the import of books affect the general organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting The K Dow Petrochemicals Joint Venture Case Study Analysis consists of 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 ought to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The K Dow Petrochemicals Joint Venture Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the existence of large number of competitors. 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 consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in different market sections, with a major focus on educational publications. CIP serves as a danger for CMP as it could 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 K Dow Petrochemicals Joint Venture Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the company require an immediate option to prevent the decreasing market development. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business needs to first gathers the data related to the customer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining because 2008, revealing a risk to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.