The Way Forward Case Study Solution and Analysis
Intro
The Way Forward Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, The Way Forward Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns 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 Way Forward Case Study Analysis has specific strengths that can be used to lower the risks, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Way Forward Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the business to consider several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the business in executing its advancement program. The weak points of The Way Forward Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting The Way Forward Case Study Solution too, but the growth might be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually postured particular risks to The Way Forward Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of The Way Forward Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The general financial performance of the business could be examined by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of The Way Forward Case Study Solution is growing and the business is rather efficient in drawing in a large number of clients at a potential price.
In addition to it, the 2nd graph which shows the annual development in the The Way Forward Case Study Solution total properties, shows that the company is quite effective in including worth to its assets through its earnings. The development in properties shows that the total value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis relating to the circulation of total earnings of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant 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 Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the The Way Forward Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the total business at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Way Forward Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Way Forward Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Way Forward Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The Way Forward Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market growth. For that reason, introduction of digital publishing could prove to be an immediate solution with low quantity of threat for the company. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the customer demand, the potential markets, the federal government regulations and the data connected to the rivals provided in the market. After that, the company must decide one prospective section for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the business must opt for the preliminary offering. If the initial offering shows a success, the business should opt for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a risk to the business's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
