Ufs Corporation A 2 Case Study Solution and Analysis
Introduction
Ufs Corporation A 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Ufs Corporation A 2 Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ufs Corporation A 2 Case Study Help has specific strengths that can be utilized to reduce the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Ufs Corporation A 2 Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the company to think about a number of development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in executing its development program. The weaknesses of Ufs Corporation A 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Ufs Corporation A 2 Case Study Analysis as well, but the development could be revived by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has presented particular hazards to Ufs Corporation A 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Ufs Corporation A 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the business could be evaluated by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Ufs Corporation A 2 Case Study Analysis is growing and the business is quite efficient in bring in a large number of consumers at a prospective rate.
In addition to it, the 2nd graph which reveals the yearly growth in the Ufs Corporation A 2 Case Study Solution overall assets, reveals that the company is rather efficient in adding value to its properties through its earnings. The development in possessions shows that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of overall incomes of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Ufs Corporation A 2 Case Study Solution company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Ufs Corporation A 2 Case Study Solution. However, the customer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Ufs Corporation A 2 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard 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 changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Ufs Corporation A 2 Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Ufs Corporation A 2 Case Study Analysis consist of;.
• Chemical Market 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).
It was likewise established in the very same duration as Ufs Corporation A 2 Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining industry growth. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to first collects the information related to the customer demand, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, revealing a danger to the company's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
