The Profession Of The Law Case Study Solution and Analysis
Intro
The Profession Of The Law Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and The Profession Of The Law Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of concerns 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 business could be used 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 Profession Of The Law Case Study Help has specific strengths that can be made use of to decrease the threats, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Profession Of The Law Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position enables the business to consider several development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restrictions for the business in executing its development program. The weaknesses of The Profession Of The Law Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company 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 must propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting The Profession Of The Law Case Study Help as well, but the growth might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has positioned certain dangers to The Profession Of The Law Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of The Profession Of The Law Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual total earnings of The Profession Of The Law Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is rather efficient in bring in a large number of consumers at a prospective rate.
In addition to it, the 2nd graph which reveals the annual growth in the The Profession Of The Law Case Study Analysis overall properties, reveals that the company is rather efficient in adding worth to its properties through its incomes. The growth in properties shows that the total value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis regarding the distribution of total incomes of the company. Major part of the revenues 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 service sections with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the The Profession Of The Law Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the total business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative materials etc. China has the greatest population in the world with a high population growth, showing the increasing number of customers of the The Profession Of The Law Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Profession Of The Law Case Study Solution includes 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 should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered 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 Model might be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the digital libraries on specific websites. The changing customer choices towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Profession Of The Law Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence 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 Profession Of The Law Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market segments, with a significant focus on academic publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of The Profession Of The Law Case Study Analysis easily in the existing 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 terms of service scale. It is also among the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate option to avoid the decreasing market development. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information related to the customer demand, the possible markets, the federal government policies and the data 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 method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a risk to the business's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
