The Post Merger Dilemma Cartoon Case Case Study Solution and Analysis
Introduction
The Post Merger Dilemma Cartoon Case 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 information, processing information and interaction services. Major service sections of the business include; books, periodicals, consultancy and distribution. The company has a large item portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports etc. The Post Merger Dilemma Cartoon Case Case Study Analysis has become a specialized information supplier and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, The Post Merger Dilemma Cartoon Case Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Post Merger Dilemma Cartoon Case Case Study Solution has certain strengths that can be utilized to lower the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Post Merger Dilemma Cartoon Case Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position enables the business to think about numerous development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the company in executing its development program. The weaknesses of The Post Merger Dilemma Cartoon Case Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company 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 must propose certain growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting The Post Merger Dilemma Cartoon Case Case Study Analysis as well, but the growth might be revived by availing particular chances provided in the market. The market chances for CMP consist of;
• The company could 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 growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually postured specific hazards to The Post Merger Dilemma Cartoon Case Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of The Post Merger Dilemma Cartoon Case Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry along with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall profits of The Post Merger Dilemma Cartoon Case Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in bring in a big number of clients at a potential price.
Together with it, the second graph which shows the annual development in the The Post Merger Dilemma Cartoon Case Case Study Solution overall properties, shows that the business is quite efficient in including worth to its possessions through its incomes. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis regarding the distribution of total profits of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting The Post Merger Dilemma Cartoon Case Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular 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 demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Post Merger Dilemma Cartoon Case Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought 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 Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the virtual libraries on specific sites. The changing 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 a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Post Merger Dilemma Cartoon Case Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Post Merger Dilemma Cartoon Case Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• 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 sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant option to prevent the decreasing industry growth. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to first collects the information related to the consumer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a hazard to the business's long term existence, however the situation can be managed by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
