The Oakland As Case 2 Case Study Solution and Analysis
Intro
The Oakland As Case 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering details, processing info and communication services. Significant business sectors of the business include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. The Oakland As Case 2 Case Study Analysis has become a specialized information company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and The Oakland As Case 2 Case Study Help in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Oakland As Case 2 Case Study Solution has particular strengths that can be used to minimize the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Oakland As Case 2 Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position enables the company to think about numerous development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of The Oakland As Case 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting The Oakland As Case 2 Case Study Solution too, but the development could be revived by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has presented specific hazards to The Oakland As Case 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of The Oakland As Case 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market together with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The total monetary performance of the business might be evaluated by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The Oakland As Case 2 Case Study Solution is growing and the business is quite efficient in attracting a a great deal of consumers at a potential cost.
In addition to it, the 2nd graph which shows the yearly growth in the The Oakland As Case 2 Case Study Help overall properties, reveals that the company is quite efficient in adding worth to its properties through its profits. The development in properties shows that the total worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the distribution of total incomes of the company. Major part of the incomes 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 company sections with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the business and the recent trends 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 considerable influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces impacting The Oakland As Case 2 Case Study Solution organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the The Oakland As Case 2 Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the general organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The Oakland As Case 2 Case Study Solution includes the concerns of ecological communities 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers 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. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the documents presented in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Oakland As Case 2 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier 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 an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Oakland As Case 2 Case Study Analysis consist of;.
• 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 kind of books. For a large period, CIP held the largest market share, and still ranks third and second in various market segments, with a significant focus on educational publications. CIP functions as a risk 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 The Oakland As Case 2 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections 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 together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an instant solution to prevent the declining market growth. Intro of digital publishing could show to be an instant service with low quantity of danger for the business. However, the company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first gathers the data related to the consumer demand, the prospective markets, the government regulations and the data associated with the rivals presented in the market. After that, the business needs to decide one possible segment for its preliminary offering. It ought to collect research that how it could distinguish its digital publishing from the existing competitors' products. After all the actions above the business should opt for the initial offering. If the initial offering proves a success, the company must go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a danger to the company's long term existence, but the situation can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
