Toward Golden Pond B 2 Case Study Solution and Analysis
Intro
Toward Golden Pond B 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Toward Golden Pond B 2 Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of concerns 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 used 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
Toward Golden Pond B 2 Case Study Analysis has particular strengths that can be used to lower the risks, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Toward Golden Pond B 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position permits the company to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Toward Golden Pond B 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting Toward Golden Pond B 2 Case Study Analysis too, but the development could be restored by availing specific chances provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular dangers to Toward Golden Pond B 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Toward Golden Pond B 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. The overall financial efficiency of the business might be evaluated by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Toward Golden Pond B 2 Case Study Help is growing and the company is rather effective in attracting a a great deal of customers at a prospective rate.
Along with it, the second chart which reveals the yearly growth in the Toward Golden Pond B 2 Case Study Help overall assets, reveals that the business is quite efficient in adding worth to its possessions through its revenues. The growth in possessions shows that the total worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the offered data might be the analysis concerning the circulation of total profits of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Toward Golden Pond B 2 Case Study Help company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Toward Golden Pond B 2 Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the industry.
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 rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Toward Golden Pond B 2 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier 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 marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Toward Golden Pond B 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the declining industry development. The company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information related to the customer demand, the prospective markets, the federal government policies and the information associated with the rivals presented in the market. After that, the company needs to decide one possible segment for its preliminary offering. It needs to gather research that how it could distinguish its digital publishing from the existing competitors' items. After all the steps above the company must choose the initial offering. The company should go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, revealing a hazard to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
