The Oakland As Case Study Solution and Analysis
Introduction
The Oakland As Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing information and communication services. Major business sectors of the business include; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. The Oakland As Case Study Analysis has ended up being a specialized information provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, The Oakland As Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These aspects consist of;
• 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 transformation of the macro markets have raised several 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 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 Study Help has specific strengths that can be made use of to reduce the hazards, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Oakland As Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position enables the company to think about several development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase restrictions for the business in executing its advancement program. The weak points of The Oakland As Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting The Oakland As Case Study Analysis as well, but the growth might be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually posed particular threats to The Oakland As Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of The Oakland As Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly overall incomes of The Oakland As Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in bring in a big number of customers at a potential rate.
Together with it, the second graph which reveals the annual growth in the The Oakland As Case Study Help overall properties, reveals that the business is rather efficient in including value to its possessions through its revenues. The growth in properties reveals that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the distribution of total incomes of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted 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 might have a significant effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting The Oakland As Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the The Oakland As Case Study Help in particular includesthe costs of paper, the income 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 affect the general organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful materials etc. China has the greatest population in the world with a high population development, revealing the increasing variety of customers of the The Oakland As Case Study Help. 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 fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Oakland As Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the documents provided in the virtual libraries on particular websites. The changing customer choices towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Oakland As Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Oakland As Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sections, with a major focus 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 marketplace share of The Oakland As Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as The Oakland As Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an immediate option to prevent the declining market development. For that reason, introduction of digital publishing could show to be an instant option with low quantity of risk for the company. Nevertheless, the business might likewise consider 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 initially collects the data related to the customer need, the possible markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, showing a threat to the business's long term existence, but the scenario can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
