Ufid F Case Study Solution and Analysis
Ufid F Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Ufid F Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 situation? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Ufid F Case Study Solution has specific strengths that can be used to decrease the hazards, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Ufid F Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position allows the company to think about several advancement chances without any fear of raising fund externally.
Together with the strengths, the company has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Ufid F Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is declining since 2008, impacting Ufid F Case Study Analysis as well, but the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Ufid F Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Ufid F Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain 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 existence of high competition increases the danger of losing the customer base.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be calculated. The general financial performance of the company might be evaluated by using the charts offered in the case Appendices. It might be evaluated from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Ufid F Case Study Help is growing and the business is quite efficient in bring in a a great deal of customers at a prospective rate.
Along with it, the 2nd chart which reveals the annual development in the Ufid F Case Study Solution total properties, shows that the company is rather efficient in adding worth to its possessions through its profits. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of total incomes of the business. Major part of the earnings 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 company segments with a potential growth to accomplish its future advancement goal.
PESTEL analysis might be performed to discover the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Ufid F Case Study Help company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting 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 development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Ufid F Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized 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 guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Ufid F Case Study Analysis consist of the suppliers of the paper for releasing files. 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 marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Ufid F Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on academic publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Ufid F Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
As the choices are shifting towards digital publishing and the company require an instant option to prevent the decreasing market growth. The business might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information related to the customer demand, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
The development of the publishing industry is decreasing considering that 2008, revealing a threat to the business's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business could consider introducing 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.