Ultimate Fighting Championship License To Operate A 2 Case Study Solution and Analysis
Intro
Ultimate Fighting Championship License To Operate A 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing information and communication services. Major company sections of the business consist of; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its major items include books, regulars, online media, exhibitions, research reports and so on. Ultimate Fighting Championship License To Operate A 2 Case Study Help has ended up being a specialized details company and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing market in general and Ultimate Fighting Championship License To Operate A 2 Case Study Analysis in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ultimate Fighting Championship License To Operate A 2 Case Study Analysis has certain strengths that can be used to minimize the hazards, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Ultimate Fighting Championship License To Operate A 2 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position enables the company to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase constraints for the business in implementing its advancement program. The weak points of Ultimate Fighting Championship License To Operate A 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Ultimate Fighting Championship License To Operate A 2 Case Study Help too, but the growth might be revived by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing market has positioned particular risks to Ultimate Fighting Championship License To Operate A 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Ultimate Fighting Championship License To Operate A 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total revenues of Ultimate Fighting Championship License To Operate A 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a big number of clients at a possible cost.
In addition to it, the second chart which reveals the yearly development in the Ultimate Fighting Championship License To Operate A 2 Case Study Analysis overall possessions, reveals that the business is quite efficient in including value to its possessions through its revenues. The development in assets reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the circulation of total incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Ultimate Fighting Championship License To Operate A 2 Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Ultimate Fighting Championship License To Operate A 2 Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Ultimate Fighting Championship License To Operate A 2 Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
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 short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the files provided in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal 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 participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Ultimate Fighting Championship License To Operate A 2 Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Ultimate Fighting Championship License To Operate A 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• 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 utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining industry development. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should first collects the information related to the customer need, the possible markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term existence, however the situation can be managed by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
