The Presidential Puzzle Assignment Case Study Solution and Analysis
Introduction
The Presidential Puzzle Assignment Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, The Presidential Puzzle Assignment Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Presidential Puzzle Assignment Case Study Solution has certain strengths that can be utilized to decrease the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Presidential Puzzle Assignment Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position permits the business to think about several advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of The Presidential Puzzle Assignment Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting The Presidential Puzzle Assignment Case Study Solution as well, however the growth could be restored by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• 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 growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has postured specific risks to The Presidential Puzzle Assignment Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of The Presidential Puzzle Assignment Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors 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 specific techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be determined. The general monetary performance of the company could be examined by utilizing the charts offered in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of The Presidential Puzzle Assignment Case Study Solution is growing and the business is rather effective in bring in a a great deal of consumers at a prospective price.
Together with it, the 2nd chart which reveals the annual development in the The Presidential Puzzle Assignment Case Study Solution total possessions, shows that the company is rather efficient in adding worth to its assets through its revenues. The development in properties reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis relating to the distribution of overall revenues of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the performance of the company 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 could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the The Presidential Puzzle Assignment Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. Together with it, the economic policies related to the import of books affect the general service at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative products and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the The Presidential Puzzle Assignment Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The Presidential Puzzle Assignment Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations 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 forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the digital libraries on certain sites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to 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 Presidential Puzzle Assignment Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Presidential Puzzle Assignment Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as The Presidential Puzzle Assignment Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining industry growth. For that reason, intro of digital publishing might show to be an immediate option with low amount of danger for the company. However, the business 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 ought to first collects the information related to the customer demand, the possible markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, but the situation can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
