Ultimate Fighting Championship License To Operate A Case Study Solution and Analysis
Introduction
Ultimate Fighting Championship License To Operate A Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Ultimate Fighting Championship License To Operate A Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several concerns 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 business 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 Case Study Solution has particular strengths that can be made use of to decrease the risks, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Ultimate Fighting Championship License To Operate A Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong monetary position allows the business to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase restraints for the company in executing its development program. The weaknesses of Ultimate Fighting Championship License To Operate A Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Ultimate Fighting Championship License To Operate A Case Study Solution also, but the growth might be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed certain risks to Ultimate Fighting Championship License To Operate A Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Ultimate Fighting Championship License To Operate A Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be determined. The general monetary performance of the business might be analyzed by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Ultimate Fighting Championship License To Operate A Case Study Solution is growing and the business is quite efficient in attracting a a great deal of customers at a prospective rate.
In addition to it, the second graph which shows the yearly development in the Ultimate Fighting Championship License To Operate A Case Study Help total properties, shows that the company is quite effective in adding worth to its assets through its earnings. The growth in assets shows that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis concerning the circulation of total revenues of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Ultimate Fighting Championship License To Operate A Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the digital libraries on certain websites. The altering customer choices towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Ultimate Fighting Championship License To Operate A Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Ultimate Fighting Championship License To Operate A Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Ultimate Fighting Championship License To Operate A Case Study Help and CIP. It is likewise 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
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to prevent the decreasing market development. Introduction of digital publishing might show to be an instant service with low amount of danger for the business. Nevertheless, the business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should initially collects the information related to the customer need, the potential markets, the government policies and the information associated with the competitors provided in the market. After that, the company needs to decide one prospective sector for its initial offering. It needs to collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the actions above the company need to choose the initial offering. If the preliminary offering proves a success, the company must choose the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a danger to the company's long term existence, however the situation can be controlled by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
