The Wen Group 2 Case Study Solution and Analysis
Introduction
The Wen Group 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Wen Group 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 valuable experience, technical resources and the abilities of the company could be made use of 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 Wen Group 2 Case Study Solution has certain strengths that can be used to decrease the threats, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Wen Group 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position permits the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
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 Wen Group 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting The Wen Group 2 Case Study Help as well, however the growth might be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has actually postured specific hazards to The Wen Group 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of The Wen Group 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total profits of The Wen Group 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in attracting a large number of clients at a prospective rate.
In addition to it, the second chart which reveals the yearly development in the The Wen Group 2 Case Study Help total possessions, reveals that the business is quite efficient in including value to its assets through its earnings. The development in possessions shows that the overall worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the circulation of overall incomes of the business. 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 might move towards other organisation sectors with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful products and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the The Wen Group 2 Case Study Help. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Wen Group 2 Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Wen Group 2 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Wen Group 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks third and second in different market sections, with a major focus on instructional publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Wen Group 2 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the prominent players in the publishing industry with an annual overall earnings 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 chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate solution to prevent the declining industry development. The company could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company should first collects the information related to the customer need, the prospective markets, the government guidelines and the information connected to the rivals presented in the market. After that, the business should choose one possible segment for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' items. The actions above the business must go for the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term existence, however the situation can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
