The Premium Project Case Study Solution and Analysis
The Premium Project Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, The Premium Project Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
The Premium Project Case Study Analysis has certain strengths that can be made use of to reduce the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Premium Project Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position allows the business to think about numerous advancement opportunities with no worry of raising fund externally.
In addition to the strengths, the company has certain weak points which might increase restrictions for the company in implementing its advancement program. The weaknesses of The Premium Project Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Although, the growth of the publishing industry is declining considering that 2008, affecting The Premium Project Case Study Solution also, however the development could be revived by availing specific chances presented in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed specific risks to The Premium Project Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of The Premium Project Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market along with presence of high competition increases the danger of losing the customer base.
Due to lack of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total profits of The Premium Project Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in bring in a large number of consumers at a potential cost.
Along with it, the second chart which reveals the yearly growth in the The Premium Project Case Study Help total possessions, shows that the business is quite effective in including value to its properties through its incomes. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis concerning the distribution of overall incomes of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a possible development to accomplish its future development goal.
PESTEL analysis could be conducted 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 brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting The Premium Project Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to 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 gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Premium Project Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
CMP operates in an extremely competitive industry with the presence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Premium Project Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in different market sectors, with a major focus on instructional publications. CIP serves 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 Premium Project Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the declining industry growth. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must initially collects the information related to the consumer demand, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining because 2008, revealing a danger to the company's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.