Unimicron Technology Corporation Case Study Solution and Analysis
Intro
Unimicron Technology Corporation Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing info and communication services. Significant organisation sectors of the company include; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. Unimicron Technology Corporation Case Study Solution has ended up being a specialized info service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Unimicron Technology Corporation Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Unimicron Technology Corporation Case Study Analysis has specific strengths that can be used to decrease the dangers, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Unimicron Technology Corporation Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the company to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase constraints for the company in executing its development program. The weak points of Unimicron Technology Corporation Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods 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 expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, impacting Unimicron Technology Corporation Case Study Help as well, but the development could be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business could 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 decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned certain risks to Unimicron Technology Corporation Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Unimicron Technology Corporation Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual overall revenues of Unimicron Technology Corporation Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in attracting a big number of clients at a possible rate.
Together with it, the 2nd chart which reveals the yearly growth in the Unimicron Technology Corporation Case Study Solution total properties, reveals that the company is quite effective in adding worth to its possessions through its revenues. The growth in properties shows that the total worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis relating to the circulation of overall incomes of the business. Major part of the revenues 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 service segments with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect 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 Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Unimicron Technology Corporation Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. Along with it, the financial policies related to the import of books affect the overall company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Unimicron Technology Corporation 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 needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Unimicron Technology Corporation Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly 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. Major competitors of Unimicron Technology Corporation Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in different market segments, with a significant focus on educational publications. 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 marketplace share of Unimicron Technology Corporation Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat 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 abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition 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.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining market development. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to first collects the data related to the consumer need, the possible markets, the federal government guidelines and the information related to the competitors presented 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 growth of the publishing industry is decreasing since 2008, showing a risk to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
