The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Solution and Analysis
Introduction
The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering details, processing info and communication services. Major service sectors of the company consist of; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports and so on. The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Help has become a specialized information company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Help in specific. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement 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 situation? Do the long valuable experience, technical resources and the capabilities of the company 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 Case Study Help has certain strengths that can be made use of to lower the dangers, overcome the weakness 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 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position enables the business to think about a number of advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase restraints for the business in implementing its development program. The weaknesses of The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, 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 should propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Analysis as well, however the development might be revived by availing particular chances presented in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned particular threats to The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number 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 certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly overall incomes of The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is quite effective in attracting a large number of consumers at a potential cost.
Along with it, the 2nd chart which shows the annual development in the The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Analysis total assets, shows that the business is quite effective in including worth to its assets through its revenues. The growth in properties shows that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis concerning the circulation of overall revenues of the business. 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 business could move towards other service segments with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books affect the general organisation at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative products and so on. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Help. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
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, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Help include the providers 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 Purchaser.
Negotiating 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 rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Water Challenge In Kenya A Challenge Or An Opportunity Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could 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 existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the prominent players in the publishing industry with an annual 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 Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
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 need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining industry growth. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first gathers the information related to the customer demand, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a risk to the business's long term presence, however the circumstance can be managed by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
