Toward Golden Pond A Case Study Solution and Analysis
Intro
Toward Golden Pond A Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Toward Golden Pond A Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the 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 change 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 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
Toward Golden Pond A Case Study Analysis has particular strengths that can be made use of to minimize the threats, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Toward Golden Pond A Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position permits the business to think about several development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Toward Golden Pond A Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, 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 growth. It needs to propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Toward Golden Pond A Case Study Analysis also, but the development could be restored by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has presented specific risks to Toward Golden Pond A Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Toward Golden Pond A Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry together with presence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be determined. However, the general financial efficiency of the company might be analyzed by using the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Toward Golden Pond A Case Study Analysis is growing and the company is quite efficient in drawing in a a great deal of clients at a possible cost.
In addition to it, the 2nd graph which reveals the yearly development in the Toward Golden Pond A Case Study Solution overall properties, reveals that the company is quite efficient in adding value to its possessions through its incomes. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis concerning the circulation of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative products etc. China has the greatest population in the world with a high population development, showing the increasing number of consumers of the Toward Golden Pond A Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Toward Golden Pond A Case Study Analysis includes the issues of ecological communities over the use 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 should not be harmful for the environment.
Legal.
Legal policies 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 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-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 extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the files provided in the digital libraries on specific sites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Toward Golden Pond A Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Toward Golden Pond A Case Study Help consist of;.
• 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 could wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the 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 gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an immediate option to avoid the decreasing market development. Introduction of digital publishing might prove to be an immediate option with low amount of threat for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the information related to the customer demand, the potential markets, the government policies and the data connected to the rivals provided in the market. After that, the business should decide one prospective section for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing rivals' products. The steps above the business ought to go for the initial offering. If the initial offering proves a success, the company ought to go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a risk to the business's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
