The New Normal 2009 A Case Study Solution and Analysis
Intro
The New Normal 2009 A Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering information, processing details and communication services. Significant company sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. The New Normal 2009 A Case Study Analysis has become a specialized info provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, The New Normal 2009 A Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The New Normal 2009 A Case Study Solution has certain strengths that can be made use of to decrease the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The New Normal 2009 A Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the company to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the business in implementing its development program. The weaknesses of The New Normal 2009 A Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting The New Normal 2009 A Case Study Help also, however the growth could be restored by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has posed specific risks to The New Normal 2009 A Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of The New Normal 2009 A Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of information, the financial ratios of CMP might not be determined. However, the total financial efficiency of the business might be evaluated by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of The New Normal 2009 A Case Study Solution is growing and the company is quite effective in attracting a large number of consumers at a possible price.
Along with it, the second graph which shows the annual growth in the The New Normal 2009 A Case Study Analysis overall properties, shows that the company is quite efficient in adding value to its possessions through its revenues. The development in properties shows that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the distribution of total revenues of the company. Major 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 could move towards other company sectors with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the The New Normal 2009 A Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the general business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The New Normal 2009 A Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into 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 Five Forces Design might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The New Normal 2009 A Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The New Normal 2009 A Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks third and second in different market segments, with a significant focus on academic publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of The New Normal 2009 A Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as The New Normal 2009 A Case Study Help and CIP. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining industry development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first collects the data related to the consumer need, the prospective markets, the federal government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term existence, however the scenario can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
