The Miswak Company Case Study Solution and Analysis
Introduction
The Miswak Company Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details supplier and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, The Miswak Company Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of concerns 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 capabilities of the company 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 Miswak Company Case Study Analysis has particular strengths that can be utilized to minimize the risks, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Miswak Company Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position allows the business to consider several advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which could increase constraints for the business in executing its development program. The weak points of The Miswak Company Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting The Miswak Company Case Study Solution as well, however the development could be restored by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually postured particular risks to The Miswak Company Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of The Miswak Company Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat 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 industry along with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual overall revenues of The Miswak Company Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather effective in drawing in a large number of consumers at a potential rate.
Together with it, the second graph which reveals the yearly growth in the The Miswak Company Case Study Solution total assets, shows that the company is rather effective in adding worth to its assets through its incomes. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the circulation of total revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting The Miswak Company Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the The Miswak Company Case Study Solution in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies related to the import of books affect the general organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Miswak Company Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific websites. The changing customer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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 rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Miswak Company Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market 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 competitors of The Miswak Company Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major concentrate on instructional publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Miswak Company Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an immediate service to prevent the declining market growth. The company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to first collects the data related to the customer demand, the possible markets, the federal government regulations and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, revealing a risk to the company's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
