The Midnight Journal Entry 2 Case Study Solution and Analysis
Introduction
The Midnight Journal Entry 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and The Midnight Journal Entry 2 Case Study Solution in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Midnight Journal Entry 2 Case Study Analysis has certain strengths that can be made use of to minimize the hazards, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Midnight Journal Entry 2 Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position allows the company to consider numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its advancement program. The weak points of The Midnight Journal Entry 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company 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 must propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting The Midnight Journal Entry 2 Case Study Analysis also, however the growth could be restored by availing certain opportunities provided in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has postured certain risks to The Midnight Journal Entry 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of The Midnight Journal Entry 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular techniques like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market in addition to existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly total revenues of The Midnight Journal Entry 2 Case Study Solution during 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 company is quite effective in drawing in a large number of clients at a potential price.
Along with it, the second chart which reveals the yearly growth in the The Midnight Journal Entry 2 Case Study Analysis overall possessions, shows that the company is rather effective in including worth to its properties through its earnings. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis regarding the distribution of total revenues of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the The Midnight Journal Entry 2 Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the overall company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting The Midnight Journal Entry 2 Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs 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 evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Midnight Journal Entry 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Midnight Journal Entry 2 Case Study Solution consist of;.
• Chemical Industry 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 publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a significant concentrate on educational publications. CIP functions 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 Midnight Journal Entry 2 Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Midnight Journal Entry 2 Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• 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.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the declining industry development. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company ought to initially gathers the information related to the consumer need, the potential markets, the federal government regulations and the information related to the competitors provided in the market. After that, the company needs to choose one prospective segment for its initial offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the company should opt for the initial offering. If the initial offering shows a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a hazard to the business's long term existence, but the scenario can be controlled by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
