The Weather Company Case Study Solution and Analysis
Introduction
The Weather Company Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and The Weather Company Case Study Analysis in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• 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 important experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Weather Company Case Study Analysis has certain strengths that can be utilized to reduce the threats, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Weather Company Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong monetary position allows the business to consider numerous development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase restrictions for the business in implementing its development program. The weak points of The Weather Company Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways 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 growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting The Weather Company Case Study Solution too, but the growth might be revived by availing certain chances provided in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned certain risks to The Weather Company Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of The Weather Company Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the annual total incomes of The Weather Company Case Study Analysis throughout the period 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 quite efficient in attracting a large number of customers at a possible cost.
Together with it, the 2nd graph which reveals the yearly growth in the The Weather Company Case Study Help overall possessions, shows that the company is rather efficient in including value to its possessions through its profits. The development in assets shows that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis regarding the distribution of overall earnings of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting The Weather Company Case Study Solution includes the concerns 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to 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 Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of 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 market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Weather Company Case Study Analysis consist of the providers of the paper for publishing 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.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Weather Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing industry with an annual overall 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
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate 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
As the choices are shifting towards digital publishing and the business require an immediate option to prevent the declining market growth. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must initially gathers the information related to the consumer need, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a risk to the company's long term existence, however the situation can be managed by considering a development plan in the future. The business might think about presenting 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.
