Unimicron Technology Corporation 2 Case Study Solution and Analysis
Introduction
Unimicron Technology Corporation 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and Unimicron Technology Corporation 2 Case Study Solution in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be used 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
Unimicron Technology Corporation 2 Case Study Analysis has certain strengths that can be made use of to minimize the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Unimicron Technology Corporation 2 Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the company to think about several advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which might increase restrictions for the company in executing its advancement program. The weak points of Unimicron Technology Corporation 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Unimicron Technology Corporation 2 Case Study Help as well, but the growth might be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually postured specific dangers to Unimicron Technology Corporation 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Unimicron Technology Corporation 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the yearly total profits of Unimicron Technology Corporation 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a big number of customers at a possible rate.
Along with it, the second chart which reveals the annual development in the Unimicron Technology Corporation 2 Case Study Analysis total assets, reveals that the business is rather efficient in adding worth to its possessions through its incomes. The development in assets shows that the overall worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis relating to the circulation of overall revenues of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces affecting Unimicron Technology Corporation 2 Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative materials and so on. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Unimicron Technology Corporation 2 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Unimicron Technology Corporation 2 Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Unimicron Technology Corporation 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry 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 rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Unimicron Technology Corporation 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Unimicron Technology Corporation 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual total 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
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item 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 service sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an instant service to avoid the declining market development. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first collects the data related to the customer demand, the possible markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the company must 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 considering that 2008, showing a hazard to the company's long term existence, however the situation can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
