Think Piece 1 Case Study Solution and Analysis
Introduction
Think Piece 1 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing information and communication services. Significant organisation sections of the business include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its major items include books, regulars, online media, exhibits, research study reports etc. Think Piece 1 Case Study Help has become a specialized details company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in general and Think Piece 1 Case Study Analysis in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized 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
Think Piece 1 Case Study Solution has particular strengths that can be used to lower the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Think Piece 1 Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position allows the company to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase constraints for the company in implementing its advancement program. The weak points of Think Piece 1 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Think Piece 1 Case Study Help also, but the development could be restored by availing certain chances provided in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment 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 vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has positioned certain dangers to Think Piece 1 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Think Piece 1 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 hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market together with existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total revenues of Think Piece 1 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in drawing in a big number of customers at a potential cost.
Along with it, the second chart which reveals the yearly development in the Think Piece 1 Case Study Solution overall properties, shows that the company is rather efficient in adding value to its assets through its profits. The development in assets shows that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis concerning the circulation of overall earnings of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products etc. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Think Piece 1 Case Study Analysis. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Think Piece 1 Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents provided in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Think Piece 1 Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Think Piece 1 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in various market segments, with a major concentrate on academic publications. CIP functions 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 Think Piece 1 Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant option to prevent the declining industry development. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially gathers the data related to the consumer need, the potential markets, the government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a danger to the company's long term presence, however the scenario can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
