The Millennium Challenge Corporation And Ghana 2 Case Study Solution and Analysis
Introduction
The Millennium Challenge Corporation And Ghana 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and The Millennium Challenge Corporation And Ghana 2 Case Study Help in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Millennium Challenge Corporation And Ghana 2 Case Study Analysis has certain strengths that can be made use of to lower the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Millennium Challenge Corporation And Ghana 2 Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong monetary position enables the business to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of The Millennium Challenge Corporation And Ghana 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, affecting The Millennium Challenge Corporation And Ghana 2 Case Study Analysis as well, but the growth could be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition 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 utilizing its large funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has positioned certain dangers to The Millennium Challenge Corporation And Ghana 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of The Millennium Challenge Corporation And Ghana 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall profits of The Millennium Challenge Corporation And Ghana 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in attracting a big number of customers at a possible rate.
In addition to it, the second graph which reveals the annual development in the The Millennium Challenge Corporation And Ghana 2 Case Study Analysis overall properties, reveals that the business is quite efficient in adding value to its assets through its profits. The growth in properties reveals that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis relating to the circulation of total incomes of the business. Huge part of the profits 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 sections with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand 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 meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology along with the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The Millennium Challenge Corporation And Ghana 2 Case Study Analysis consists of the concerns of environmental 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 utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the 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 Model).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry 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 Supplier.
The major providers of the The Millennium Challenge Corporation And Ghana 2 Case Study Analysis include the providers 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 supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Millennium Challenge Corporation And Ghana 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as The Millennium Challenge Corporation And Ghana 2 Case Study Analysis 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: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business need an instant service to avoid the decreasing industry development. For that reason, introduction of digital publishing could show to be an immediate option with low quantity of threat for the business. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first gathers the data related to the customer demand, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a danger to the business's long term presence, but the situation can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
