Think Piece 1 Case Study Solution and Analysis
Think Piece 1 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing info and communication services. Significant company sections of the business consist of; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. Think Piece 1 Case Study Help has ended up being a specialized details company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Think Piece 1 Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Think Piece 1 Case Study Help has certain strengths that can be utilized to decrease the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Think Piece 1 Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position enables the business to consider numerous development opportunities without any worry of raising fund externally.
Along with the strengths, the company has certain weak points which might increase restraints for the company in executing its development program. The weak points of Think Piece 1 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining considering that 2008, impacting Think Piece 1 Case Study Analysis also, however the growth could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain threats to Think Piece 1 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Think Piece 1 Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the danger of losing the client base.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. However, the overall financial efficiency of the company might be examined by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Think Piece 1 Case Study Help is growing and the business is rather efficient in bring in a a great deal of consumers at a prospective rate.
In addition to it, the second graph which reveals the yearly development in the Think Piece 1 Case Study Analysis overall possessions, reveals that the company is rather efficient in adding worth to its assets through its incomes. The growth in assets shows that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis concerning the distribution of overall profits of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to attain its future development goal.
PESTEL analysis could be conducted to find out 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 provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology together with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Think Piece 1 Case Study Analysis 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 disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry 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 Think Piece 1 Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
CMP runs in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Think Piece 1 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Think Piece 1 Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an immediate solution to prevent the declining industry development. Intro of digital publishing might show to be an instant service with low quantity of danger for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer demand, the possible markets, the federal government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining since 2008, revealing a hazard to the business's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.