The Smart Grid 2 Case Study Solution and Analysis
Introduction
The Smart Grid 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, The Smart Grid 2 Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Smart Grid 2 Case Study Help has certain strengths that can be utilized to reduce the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Smart Grid 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong financial position permits the business to think about several development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of The Smart Grid 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting The Smart Grid 2 Case Study Analysis as well, but the development could be restored by availing specific chances provided in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured particular hazards to The Smart Grid 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of The Smart Grid 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly overall profits of The Smart Grid 2 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a large number of consumers at a potential price.
Along with it, the 2nd chart which shows the yearly development in the The Smart Grid 2 Case Study Analysis total possessions, shows that the business is quite efficient in including worth to its possessions through its profits. The development in assets shows that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the distribution of total earnings 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 business sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the 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 total political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The Smart Grid 2 Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to 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 controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Smart Grid 2 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Smart Grid 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as The Smart Grid 2 Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments 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 business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an immediate solution to avoid the declining industry growth. Intro of digital publishing might show to be an immediate solution with low quantity of threat for the company. However, 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 product portfolio, the company needs to first collects the data associated with the customer demand, the potential markets, the government policies and the information associated with the competitors presented in the market. After that, the company needs to decide one potential segment for its initial offering. It should gather research study that how it might distinguish its digital publishing from the existing competitors' products. After all the actions above the company ought to opt for the initial offering. If the initial offering shows a success, the company should go for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
