The U S Military Academy At West Point Case Study Solution and Analysis
Introduction
The U S Military Academy At West Point Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, The U S Military Academy At West Point Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The U S Military Academy At West Point Case Study Analysis has certain strengths that can be utilized to decrease the threats, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The U S Military Academy At West Point Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position permits the business to consider numerous advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of The U S Military Academy At West Point Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining given that 2008, affecting The U S Military Academy At West Point Case Study Solution as well, however the growth might be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned particular threats to The U S Military Academy At West Point Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The U S Military Academy At West Point Case Study Help due to the customer 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 consumer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual total earnings of The U S Military Academy At West Point Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in bring in a big number of consumers at a possible price.
Together with it, the second chart which reveals the annual growth in the The U S Military Academy At West Point Case Study Analysis overall possessions, reveals that the business is rather effective in including value to its possessions through its profits. The development in properties shows that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the distribution of total incomes of the business. Huge part of the incomes of CMP comes 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 potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting The U S Military Academy At West Point Case Study Solution service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the The U S Military Academy At West Point Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. 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 overall organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting The U S Military Academy At West Point Case Study Help consists of the concerns 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 regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the published files is the documents presented in the virtual libraries on particular websites. The changing consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The U S Military Academy At West Point Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The U S Military Academy At West Point Case Study Solution include;.
• Chemical Market 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 might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant service to prevent the declining industry development. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must first collects the information related to the customer need, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a hazard to the company's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
