The Solow Model Unleashed Understanding Economic Growth Case Study Solution and Analysis
Introduction
The Solow Model Unleashed Understanding Economic Growth Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing information and communication services. Major business sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. The Solow Model Unleashed Understanding Economic Growth Case Study Solution has ended up being a specialized details supplier and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and The Solow Model Unleashed Understanding Economic Growth Case Study Help in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 circumstance? Do the long important experience, technical resources and the abilities of the business 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 Solow Model Unleashed Understanding Economic Growth Case Study Analysis has certain strengths that can be utilized to decrease the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Solow Model Unleashed Understanding Economic Growth Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position permits the business to think about several advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restraints for the business in executing its development program. The weak points of The Solow Model Unleashed Understanding Economic Growth Case Study Help are offered 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 highly relies over the Chinese markets for its development. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting The Solow Model Unleashed Understanding Economic Growth Case Study Analysis too, however the growth might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually posed specific dangers to The Solow Model Unleashed Understanding Economic Growth Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of The Solow Model Unleashed Understanding Economic Growth Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry along with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total revenues of The Solow Model Unleashed Understanding Economic Growth Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the business is rather effective in drawing in a big number of customers at a possible rate.
In addition to it, the second graph which shows the annual growth in the The Solow Model Unleashed Understanding Economic Growth Case Study Solution total possessions, reveals that the company is rather efficient in including worth to its properties through its revenues. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the circulation of overall earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people 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 Celebration of China. It might be said that the general political forces affecting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading helpful products and so on. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the The Solow Model Unleashed Understanding Economic Growth Case Study Analysis. Nevertheless, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting The Solow Model Unleashed Understanding Economic Growth Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the digital libraries on specific websites. The changing customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Solow Model Unleashed Understanding Economic Growth Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 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 industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Solow Model Unleashed Understanding Economic Growth Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as The Solow Model Unleashed Understanding Economic Growth Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the decreasing industry growth. The business might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially gathers the data related to the consumer demand, the prospective markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, but the scenario can be controlled by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
