Ultimate Fighting Championship License To Operate B Case Study Solution and Analysis
Intro
Ultimate Fighting Championship License To Operate B Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing info and communication services. Major service sectors of the business include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its significant items include books, periodicals, online media, exhibitions, research reports etc. Ultimate Fighting Championship License To Operate B Case Study Help has actually become a specialized details service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Ultimate Fighting Championship License To Operate B Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities of the company could be used to strive for 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 B Case Study Help has particular strengths that can be made use of to lower the threats, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ultimate Fighting Championship License To Operate B Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the business to consider numerous advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Ultimate Fighting Championship License To Operate B Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Ultimate Fighting Championship License To Operate B Case Study Analysis as well, however the development might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually postured specific dangers to Ultimate Fighting Championship License To Operate B Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Ultimate Fighting Championship License To Operate B Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors 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 using certain techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual overall earnings of Ultimate Fighting Championship License To Operate B Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a large number of customers at a possible price.
In addition to it, the second chart which shows the annual development in the Ultimate Fighting Championship License To Operate B Case Study Analysis overall possessions, reveals that the business is rather efficient in including worth to its properties through its incomes. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis concerning the distribution of total profits of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Ultimate Fighting Championship License To Operate B Case Study Analysis company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Ultimate Fighting Championship License To Operate B Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Along with it, the economic policies related to the import of books impact the overall business at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful materials and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the Ultimate Fighting Championship License To Operate B Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Ultimate Fighting Championship License To Operate B Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Ultimate Fighting Championship License To Operate B Case Study Solution include the providers of the paper for releasing 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 industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Ultimate Fighting Championship License To Operate B Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in various market segments, with a significant focus on instructional publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Ultimate Fighting Championship License To Operate B Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Ultimate Fighting Championship License To Operate B Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual overall 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.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant option to avoid the declining industry development. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first gathers the data related to the consumer need, the possible markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a danger to the business's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
