Ufidcase Series Ceo Video 2011 Video Case Study Solution and Analysis
Ufidcase Series Ceo Video 2011 Video Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing information and communication services. Significant company sections of the business consist of; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant products include books, periodicals, online media, exhibitions, research reports and so on. Ufidcase Series Ceo Video 2011 Video Case Study Analysis has become a specialized details supplier and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing industry in general and Ufidcase Series Ceo Video 2011 Video Case Study Solution in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Ufidcase Series Ceo Video 2011 Video Case Study Solution has certain strengths that can be utilized to reduce the hazards, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Ufidcase Series Ceo Video 2011 Video Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong financial position enables the business to consider a number of development chances with no worry of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase constraints for the company in executing its advancement program. The weak points of Ufidcase Series Ceo Video 2011 Video Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing given that 2008, affecting Ufidcase Series Ceo Video 2011 Video Case Study Solution as well, but the growth might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented particular hazards to Ufidcase Series Ceo Video 2011 Video Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Ufidcase Series Ceo Video 2011 Video Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry along with presence of high competitors increases the danger of losing the customer base.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the annual overall earnings of Ufidcase Series Ceo Video 2011 Video Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is rather effective in drawing in a large number of consumers at a possible price.
Together with it, the second graph which shows the yearly growth in the Ufidcase Series Ceo Video 2011 Video Case Study Analysis overall assets, reveals that the business is quite effective in adding value to its assets through its incomes. The development in properties shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis relating to the distribution of overall earnings of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible growth to accomplish its future development goal.
PESTEL analysis could be performed to discover the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given 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 assisted by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Ufidcase Series Ceo Video 2011 Video Case Study Analysis in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies related to the import of books affect the general business at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Ufidcase Series Ceo Video 2011 Video Case Study Help consists of the issues of environmental neighborhoods 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 regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Ufidcase Series Ceo Video 2011 Video Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
CMP operates in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Ufidcase Series Ceo Video 2011 Video Case Study Solution include;.
• Chemical Industry 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 might wean the market share of CMP quickly in the current market circumstance.
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 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the declining industry development. For that reason, introduction of digital publishing might prove to be an immediate solution with low quantity of threat for the business. The company could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the consumer demand, the prospective markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing market is decreasing given that 2008, revealing a risk to the business's long term existence, however the situation can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.