The Wen Group Case Study Solution and Analysis
The Wen Group Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, The Wen Group Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
The Wen Group Case Study Analysis has particular strengths that can be utilized to lower the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Wen Group Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong monetary position enables the company to consider several advancement chances without any worry of raising fund externally.
Together with the strengths, the company has particular weak points which might increase restraints for the company in executing its development program. The weaknesses of The Wen Group Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing market is declining since 2008, impacting The Wen Group Case Study Solution as well, but the growth could be restored by availing specific opportunities presented in the market. The marketplace chances 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 consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed particular hazards to The Wen Group Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of The Wen Group Case Study Analysis due to the customer 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 rivals can acquire a strong customer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competition increases the danger of losing the consumer base.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual overall revenues of The Wen Group Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather efficient in attracting a big number of consumers at a prospective rate.
Along with it, the 2nd graph which reveals the annual growth in the The Wen Group Case Study Solution overall assets, reveals that the company is quite effective in adding value to its assets through its profits. The development in properties shows that the overall worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered information might be the analysis concerning the circulation of total earnings of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a prospective growth to accomplish its future advancement objective.
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting The Wen Group Case Study Help organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out helpful materials and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the The Wen Group Case Study Help. However, the consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting The Wen Group Case Study Analysis consists of the issues of ecological 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 utilized while publishing must not be harmful for the environment.
Legal guidelines 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 gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Wen Group Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Wen Group Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the business require an instant service to avoid the declining industry development. The company might likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business needs to initially collects the data related to the consumer demand, the potential markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is decreasing considering that 2008, revealing a hazard to the company's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.