The Wen Group Case Study Solution and Analysis
Introduction
The Wen Group Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, The Wen Group Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue 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 Case Study Analysis has certain strengths that can be made use of to minimize the risks, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Wen Group Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong monetary position enables the business to consider numerous development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of The Wen Group Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining given that 2008, affecting The Wen Group Case Study Solution as well, however the development might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented particular threats to The Wen Group Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of The Wen Group Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry together with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual overall incomes of The Wen Group Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in attracting a large number of clients at a potential cost.
Along with it, the second graph which reveals the annual growth in the The Wen Group Case Study Help overall assets, shows that the business is quite efficient in adding worth to its properties through its revenues. The growth in assets shows that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis regarding the distribution of overall profits of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the The Wen Group Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the total business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out informative materials and so on. China has the highest population in the world with a high population development, showing the increasing number of consumers of the The Wen Group Case Study Help. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Wen Group Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the files provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Wen Group Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 existence of a great deal of competitors. 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 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as The Wen Group Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant service to avoid the declining market development. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must first gathers the data related to the customer demand, the potential markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
