The Midnight Journal Entry 3 Case Study Solution and Analysis
Introduction
The Midnight Journal Entry 3 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and The Midnight Journal Entry 3 Case Study Analysis in particular. These elements include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement 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 abilities of the company could be made use of 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 Midnight Journal Entry 3 Case Study Solution has particular strengths that can be used to lower the hazards, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Midnight Journal Entry 3 Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the company to consider a number of advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase restraints for the business in implementing its advancement program. The weak points of The Midnight Journal Entry 3 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, 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 growth. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting The Midnight Journal Entry 3 Case Study Solution as well, but the growth could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually postured particular dangers to The Midnight Journal Entry 3 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of The Midnight Journal Entry 3 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly overall incomes of The Midnight Journal Entry 3 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is quite effective in attracting a big number of customers at a potential price.
Together with it, the second chart which shows the yearly growth in the The Midnight Journal Entry 3 Case Study Analysis total possessions, shows that the company is quite efficient in adding worth to its assets through its incomes. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis regarding the distribution of total incomes of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting The Midnight Journal Entry 3 Case Study Analysis service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market.
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 satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The Midnight Journal Entry 3 Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Midnight Journal Entry 3 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason 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 existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Midnight Journal Entry 3 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 sections to the brand-new one can lead the company to lose need 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 competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate solution to prevent the decreasing market development. Introduction of digital publishing might prove to be an instant service with low quantity of threat for the company. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business must first gathers the data related to the customer demand, the potential markets, the federal government guidelines and the information associated with the competitors presented in the market. After that, the company ought to decide one possible sector for its initial offering. It ought to collect research study that how it could distinguish its digital publishing from the existing competitors' products. The actions above the business must go for the preliminary offering. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
