U S Universities And Technology Transfer Case Study Solution and Analysis
Introduction
U S Universities And Technology Transfer Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, U S Universities And Technology Transfer Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company 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
U S Universities And Technology Transfer Case Study Analysis has specific strengths that can be used to lower the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of U S Universities And Technology Transfer Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position allows the company to consider numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase constraints for the company in executing its development program. The weak points of U S Universities And Technology Transfer Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining given that 2008, impacting U S Universities And Technology Transfer Case Study Analysis as well, but the development might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has positioned particular dangers to U S Universities And Technology Transfer Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of U S Universities And Technology Transfer Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be determined. The total monetary performance of the company might be examined by utilizing the graphs offered in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of U S Universities And Technology Transfer Case Study Solution is growing and the business is rather effective in drawing in a a great deal of consumers at a prospective price.
Together with it, the 2nd graph which reveals the annual development in the U S Universities And Technology Transfer Case Study Help total assets, shows that the company is quite efficient in including worth to its properties through its revenues. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of total incomes of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces impacting U S Universities And Technology Transfer Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the U S Universities And Technology Transfer Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the general service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative products etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the U S Universities And Technology Transfer Case Study Help. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology along with the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting U S Universities And Technology Transfer Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the U S Universities And Technology Transfer Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general 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 purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of U S Universities And Technology Transfer Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 likewise established in the very same period as U S Universities And Technology Transfer Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an instant service to prevent the decreasing industry growth. For that reason, introduction of digital publishing might prove to be an instant option with low quantity of risk for the company. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer demand, the potential markets, the federal government regulations and the information associated with the rivals presented in the market. After that, the business must decide one potential sector for its initial offering. It needs to collect research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business must go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a danger to the business's long term existence, but the situation can be managed by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
