The Miswak Company Case Study Solution and Analysis
The Miswak Company Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing details and communication services. Major company segments of the company consist of; books, regulars, consultancy and distribution. The business has a large item portfolio and its major products consist of books, regulars, online media, exhibits, research study reports and so on. The Miswak Company Case Study Solution has actually ended up being a specialized information company and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, The Miswak Company Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
The Miswak Company Case Study Help has specific strengths that can be made use of to reduce the dangers, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Miswak Company Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the business to consider a number of advancement chances without any worry of raising fund externally.
Together with the strengths, the business has particular weak points which could increase restraints for the business in implementing its development program. The weak points of The Miswak Company Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is declining because 2008, impacting The Miswak Company Case Study Help too, however the development might be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business might likewise present 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 minimize its reliance over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competition in the publishing industry has positioned specific dangers to The Miswak Company Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Miswak Company Case Study Help due to the consumer 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 get a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry along with existence of high competition increases the danger of losing the client base.
Due to lack of information, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual total profits of The Miswak Company Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is rather effective in drawing in a large number of clients at a potential rate.
Along with it, the second chart which reveals the yearly development in the The Miswak Company Case Study Help total properties, shows that the business is rather efficient in including worth to its possessions through its incomes. The growth in possessions reveals that the total worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis relating to the circulation of overall profits of the company. 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 could move towards other company segments with a possible development to achieve its future advancement objective.
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting The Miswak Company Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. However, the presence of intense competitors 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 replacement products for the released documents is the files presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Miswak Company Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Miswak Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as The Miswak Company Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market growth. For that reason, introduction of digital publishing might prove to be an instant option with low amount of risk for the company. Nevertheless, the company could 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 needs to initially gathers the data related to the consumer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the development of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.