The Midnight Journal Entry 3 Case Study Solution and Analysis
The Midnight Journal Entry 3 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting info, processing details and communication services. Major organisation sections of the company include; books, regulars, consultancy and distribution. The business has a vast product portfolio and its major products include books, periodicals, online media, exhibits, research study reports and so on. The Midnight Journal Entry 3 Case Study Solution has actually become a specialized info service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and The Midnight Journal Entry 3 Case Study Analysis in specific. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement 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 valuable 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?
The Midnight Journal Entry 3 Case Study Solution has certain strengths that can be utilized to minimize the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Midnight Journal Entry 3 Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position allows the company to think about numerous development opportunities with no worry of raising fund externally.
Together with the strengths, the business has certain weak points which might increase constraints for the company in executing its advancement program. The weaknesses of The Midnight Journal Entry 3 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is decreasing given that 2008, affecting The Midnight Journal Entry 3 Case Study Analysis also, but the growth could be restored by availing certain chances presented in the market. The marketplace opportunities 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 think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro patterns in the market and increasing competitors in the publishing market has postured certain dangers to The Midnight Journal Entry 3 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of The Midnight Journal Entry 3 Case Study Solution 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 gain a strong customer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competitors increases the hazard of losing the consumer base.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual 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 need of the items of CMP is growing and the company is quite efficient in drawing in a big number of clients at a potential cost.
In addition to it, the 2nd chart which shows the yearly development in the The Midnight Journal Entry 3 Case Study Help overall possessions, reveals that the business is rather efficient in adding worth to its possessions through its revenues. The development in properties reveals that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis concerning the circulation of total earnings of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a possible development to achieve its future development objective.
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting The Midnight Journal Entry 3 Case Study Help business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the The Midnight Journal Entry 3 Case Study Help in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies associated with the import of books impact the overall business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products and so on. China has the highest population worldwide with a high population growth, showing the increasing variety of consumers of the The Midnight Journal Entry 3 Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental forces impacting The Midnight Journal Entry 3 Case Study Analysis consists of the issues of ecological communities 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 used while publishing must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the files presented in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Midnight Journal Entry 3 Case Study Help include the providers of the paper for publishing 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 Buyer.
Negotiating 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 market saturation, the purchasers needs high quality files at competitive rates.
CMP runs in a highly competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Midnight Journal Entry 3 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as The Midnight Journal Entry 3 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its products in the market.
As the choices are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market growth. The company might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the customer demand, the potential markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining because 2008, revealing a threat to the company's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.