United Church Housing Corporation 2 Case Study Solution and Analysis
Intro
United Church Housing Corporation 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing info and communication services. Significant business segments of the company consist of; books, regulars, consultancy and circulation. The business has a large product portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports etc. United Church Housing Corporation 2 Case Study Solution has become a specialized information company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and United Church Housing Corporation 2 Case Study Analysis in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of 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
United Church Housing Corporation 2 Case Study Solution has certain strengths that can be utilized to minimize the dangers, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of United Church Housing Corporation 2 Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of United Church Housing Corporation 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting United Church Housing Corporation 2 Case Study Help too, however the growth might be restored by availing particular chances presented in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned particular threats to United Church Housing Corporation 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of United Church Housing Corporation 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be calculated. The total monetary performance of the company could be examined by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of United Church Housing Corporation 2 Case Study Help is growing and the business is quite efficient in bring in a a great deal of customers at a prospective price.
In addition to it, the second graph which shows the yearly growth in the United Church Housing Corporation 2 Case Study Help overall assets, shows that the company is rather efficient in adding value to its assets through its profits. The growth in properties shows that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis regarding the distribution of total revenues of the company. Huge 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 organisation sections with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the company and the current patterns 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 could have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting United Church Housing Corporation 2 Case Study Solution service are high. The 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 United Church Housing Corporation 2 Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the general company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out useful products etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the United Church Housing Corporation 2 Case Study Solution. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting United Church Housing Corporation 2 Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on specific websites. The changing customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the United Church Housing Corporation 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of United Church Housing Corporation 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it could 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as United Church Housing Corporation 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate solution to prevent the declining industry development. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information associated with the consumer demand, the prospective markets, the government guidelines and the information related to the competitors provided in the market. After that, the company ought to choose one possible section for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing rivals' products. After all the actions above the company ought to choose the preliminary offering. The business must go for the other markets if the initial offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a risk to the company's long term existence, but the scenario can be managed by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
