The Project Life Cycle Definition Case Study Solution and Analysis
Intro
The Project Life Cycle Definition Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, The Project Life Cycle Definition Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Declining 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 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 abilities of the company could be used 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 Project Life Cycle Definition Case Study Solution has certain strengths that can be used to decrease the threats, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Project Life Cycle Definition Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position enables the company to think about several development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which might increase restraints for the business in executing its advancement program. The weak points of The Project Life Cycle Definition Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing because 2008, impacting The Project Life Cycle Definition Case Study Solution as well, however the growth could be restored by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned specific threats to The Project Life Cycle Definition Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Project Life Cycle Definition Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total earnings of The Project Life Cycle Definition Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a big number of consumers at a possible cost.
Together with it, the second graph which reveals the annual development in the The Project Life Cycle Definition Case Study Help overall assets, shows that the company is rather efficient in adding value to its possessions through its incomes. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the distribution of overall earnings of the company. Major 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 business could move towards other service sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting The Project Life Cycle Definition Case Study Help organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the The Project Life Cycle Definition Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the The Project Life Cycle Definition Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The Project Life Cycle Definition Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Threat of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Project Life Cycle Definition Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Project Life Cycle Definition Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant service to avoid the declining market development. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must initially collects the information related to the consumer need, the prospective markets, the government guidelines and the information connected to the competitors provided in the market. After that, the company should choose one possible sector for its initial offering. It must gather research study that how it might differentiate its digital publishing from the existing competitors' items. The steps above the business should go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a hazard to the company's long term presence, however the situation can be controlled by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
