There Is A Price For Human Life Case Study Solution and Analysis
Intro
There Is A Price For Human Life Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing market in general and There Is A Price For Human Life Case Study Help in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation 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 abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
There Is A Price For Human Life Case Study Analysis has certain strengths that can be used to lower the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of There Is A Price For Human Life Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong financial position enables the company to think about numerous advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase constraints for the business in implementing its development program. The weaknesses of There Is A Price For Human Life Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company 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 should propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting There Is A Price For Human Life Case Study Analysis also, however the growth could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented particular hazards to There Is A Price For Human Life Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of There Is A Price For Human Life Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the annual overall revenues of There Is A Price For Human Life Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in drawing in a big number of clients at a potential price.
Together with it, the 2nd graph which shows the yearly growth in the There Is A Price For Human Life Case Study Solution overall properties, shows that the business is quite effective in adding worth to its properties through its earnings. The growth in properties shows that the overall worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the distribution of total incomes of the business. Major part of the revenues of CMP comes 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 possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the company and the current 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 could have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting There Is A Price For Human Life Case Study Analysis 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 There Is A Price For Human Life Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market. Along with it, the economic policies connected to the import of books affect the total business at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the There Is A Price For Human Life Case Study Solution. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting There Is A Price For Human Life Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards 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. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the There Is A Price For Human Life Case Study Analysis consist of the suppliers of the paper for releasing files. 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.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of There Is A Price For Human Life Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as There Is A Price For Human Life Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors 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 industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an instant service to prevent the decreasing industry development. Introduction of digital publishing might prove to be an immediate option with low amount of threat for the business. The business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer demand, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, revealing a hazard to the business's long term existence, however the situation can be controlled by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
