The Power Of One 2 Case Study Solution and Analysis
Intro
The Power Of One 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and The Power Of One 2 Case Study Solution in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Power Of One 2 Case Study Analysis has specific strengths that can be utilized to lower the dangers, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Power Of One 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong financial position enables the business to think about a number of development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which might increase constraints for the business in executing its development program. The weaknesses of The Power Of One 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining since 2008, impacting The Power Of One 2 Case Study Analysis as well, however the growth might be restored by availing particular 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 consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has actually positioned specific dangers to The Power Of One 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of The Power Of One 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the client base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP might not be calculated. Nevertheless, the general monetary performance of the company could be examined by utilizing the graphs given up the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Power Of One 2 Case Study Analysis is growing and the company is rather efficient in drawing in a a great deal of customers at a possible cost.
Together with it, the second chart which reveals the annual development in the The Power Of One 2 Case Study Solution total assets, shows that the business is quite efficient in adding worth to its possessions through its revenues. The development in possessions reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the distribution of overall earnings 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 business could move towards other business sectors with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces affecting The Power Of One 2 Case Study Analysis service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Power Of One 2 Case Study Analysis consists of 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 non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the released files is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Power Of One 2 Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Power Of One 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a significant concentrate on educational publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Power Of One 2 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Power Of One 2 Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual 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 Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an instant option to avoid the declining market development. Therefore, intro of digital publishing could show to be an instant solution with low quantity of danger for the business. Nevertheless, 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 item portfolio, the business ought to first gathers the information connected to the customer need, the potential markets, the federal government regulations and the data related to the competitors presented in the market. After that, the company ought to decide one prospective section for its initial offering. It ought to gather research study that how it might separate its digital publishing from the existing rivals' items. After all the steps above the company must opt for the initial offering. The business ought to go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a danger to the company's long term existence, however the situation can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
