The Smart Grid Case Study Solution and Analysis
Intro
The Smart Grid Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, The Smart Grid Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company 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 Smart Grid 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 Smart Grid Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position enables the business to think about several advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restraints for the business in executing its development program. The weaknesses of The Smart Grid Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining given that 2008, impacting The Smart Grid Case Study Solution as well, however the growth could be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company might also present 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 decrease its dependence over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific risks to The Smart Grid Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The Smart Grid Case Study Analysis due to the customer shift towards digital 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 competitors can acquire a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market along with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the general monetary efficiency of the business might be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of The Smart Grid Case Study Help is growing and the business is rather efficient in bring in a large number of clients at a potential rate.
Together with it, the second graph which reveals the annual development in the The Smart Grid Case Study Help overall properties, reveals that the company is rather effective in adding value to its assets through its earnings. The growth in assets reveals that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall profits of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the The Smart Grid Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market. Along with it, the economic policies connected to the import of books impact the total business at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful materials etc. China has the greatest population worldwide with a high population development, showing the increasing number of consumers of the The Smart Grid Case Study Analysis. The consumer choices 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 altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Smart Grid Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful 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 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the files provided in the digital libraries on certain sites. The altering consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers 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 likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Smart Grid Case Study Solution include 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 Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Smart Grid Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in various market sections, with a significant focus on academic publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of The Smart Grid Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant solution to avoid the decreasing market development. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to first collects the data related to the consumer need, the potential markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, showing a risk to the business's long term existence, however the scenario can be controlled by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
