The Way Forward Case Study Solution and Analysis
The Way Forward Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and The Way Forward Case Study Solution in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
The Way Forward Case Study Analysis has certain strengths that can be made use of to minimize the threats, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Way Forward Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong monetary position allows the company to think about numerous development chances without any worry of raising fund externally.
Together with the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of The Way Forward Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is declining considering that 2008, affecting The Way Forward Case Study Analysis as well, however the development might be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has actually posed certain risks to The Way Forward Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of The Way Forward Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competitors increases the danger of losing the consumer base.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual overall profits of The Way Forward Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is rather effective in attracting a big number of consumers at a possible price.
In addition to it, the second chart which shows the annual growth in the The Way Forward Case Study Help total assets, reveals that the company is quite efficient in adding worth to its possessions through its incomes. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of total revenues of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a prospective development to attain its future development goal.
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might decrease the need for the CMP items, if certain actions would not be taken soon.
Ecological forces affecting The Way Forward Case Study Analysis consists of the issues of ecological neighborhoods over the usage 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 ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the files provided in the digital libraries on specific websites. The altering customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The Way Forward Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Way Forward Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 also founded in the very same period as The Way Forward Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business require an instant service to avoid the declining industry growth. The business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the data related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing market is declining since 2008, revealing a danger to the business's long term presence, but the scenario can be controlled 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.