Ufida Case Study Solution and Analysis
Ufida Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Ufida Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change 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 circumstance? Do the long important experience, technical resources and the capabilities 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?
Ufida Case Study Analysis has particular strengths that can be made use of to reduce the risks, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Ufida Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the business to think about several development chances without any worry of raising fund externally.
In addition to the strengths, the business has particular weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of Ufida Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is decreasing given that 2008, affecting Ufida Case Study Help too, but the growth could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has postured particular hazards to Ufida Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Ufida Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the hazard of losing the client base.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be determined. The general monetary performance of the company might be examined by utilizing the charts offered in the case Appendices. It might be examined from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Ufida Case Study Solution is growing and the business is quite efficient in bring in a large number of customers at a potential rate.
Along with it, the second graph which shows the yearly growth in the Ufida Case Study Help total assets, shows that the business is rather effective in adding worth to its assets through its profits. The development in possessions shows that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the given data might be the analysis relating to the circulation of overall incomes of the business. Huge 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 service sectors with a prospective growth to attain its future development objective.
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Ufida Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the general business at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful products and so on. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Ufida Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Ufida Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal regulations 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 Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Ufida Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider 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 requires high quality files at competitive rates.
CMP operates in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Ufida Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a significant focus on academic publications. CIP serves 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 might wean the marketplace share of Ufida Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an immediate option to prevent the declining market growth. Introduction of digital publishing could prove to be an instant solution with low quantity of threat for the business. However, the company might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data connected to the consumer need, the prospective markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the company needs to decide one possible sector for its initial offering. It needs to collect research that how it could separate its digital publishing from the existing competitors' products. The steps above the company must go for the preliminary offering. If the preliminary offering proves a success, the business should opt for the other markets. In this way the company would have the ability to implement its digital publishing program.
Although, the growth of the publishing market is declining given that 2008, showing a threat to the company's long term presence, 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 avoid the threat of failure for entrance in the brand-new markets.