The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Solution and Analysis
Intro
The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering info, processing details and interaction services. Significant service sectors of the business consist of; books, regulars, consultancy and distribution. The business has a large item portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports and so on. The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis has ended up being a specialized info supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in basic and The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis in specific. These elements include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change 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 circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized 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 Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Solution has particular strengths that can be used to reduce the risks, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position enables the business to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis too, however the development might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually positioned certain hazards to The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual total incomes of The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is quite effective in drawing in a big number of consumers at a possible cost.
Together with it, the second chart which shows the annual growth in the The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Solution total possessions, shows that the company is rather effective in including value to its assets through its earnings. The growth in properties shows that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information might be the analysis concerning the distribution of total profits of the company. Major 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 could move towards other organisation sections with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal 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 Five Forces Design might be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the risk of alternative 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 and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sections, with a major focus on instructional publications. CIP functions 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 could wean the market share of The Water Challenge In Kenya A Challenge Or An Opportunity 2 Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential 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 current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the decreasing market growth. Therefore, introduction of digital publishing could show to be an immediate service with low amount of threat for the company. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the consumer demand, the potential markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, revealing a danger to the business's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
