The Korean Model Of Shared Growth 1960 1990 Case Study Solution and Analysis
Introduction
The Korean Model Of Shared Growth 1960 1990 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing details and interaction services. Significant business segments of the business consist of; books, regulars, consultancy and circulation. The company has a vast product portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. The Korean Model Of Shared Growth 1960 1990 Case Study Help has actually become a specialized info provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, The Korean Model Of Shared Growth 1960 1990 Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Korean Model Of Shared Growth 1960 1990 Case Study Solution has specific strengths that can be utilized to decrease the threats, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The Korean Model Of Shared Growth 1960 1990 Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong monetary position permits the company to consider a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of The Korean Model Of Shared Growth 1960 1990 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting The Korean Model Of Shared Growth 1960 1990 Case Study Analysis as well, however the development might be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has positioned particular risks to The Korean Model Of Shared Growth 1960 1990 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Korean Model Of Shared Growth 1960 1990 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the annual overall incomes of The Korean Model Of Shared Growth 1960 1990 Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is quite effective in bring in a large number of customers at a prospective price.
Along with it, the 2nd graph which reveals the yearly development in the The Korean Model Of Shared Growth 1960 1990 Case Study Analysis overall properties, shows that the business is quite efficient in adding worth to its assets through its earnings. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis regarding the distribution of overall incomes of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting The Korean Model Of Shared Growth 1960 1990 Case Study Help service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting 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 impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading helpful materials etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the The Korean Model Of Shared Growth 1960 1990 Case Study Analysis. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The Korean Model Of Shared Growth 1960 1990 Case Study Analysis consists of the concerns 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 needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Korean Model Of Shared Growth 1960 1990 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry 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 documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal 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 Korean Model Of Shared Growth 1960 1990 Case Study Solution 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 exact same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in numerous market sections, with a significant focus on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of The Korean Model Of Shared Growth 1960 1990 Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• 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 using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate service to avoid the declining market growth. The business could likewise consider 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 collects the data related to the consumer demand, the potential markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company should 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 industry is declining because 2008, showing a risk to the business's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
