United Daily News Group A Building Hybrid Business Models Case Study Solution and Analysis
Intro
United Daily News Group A Building Hybrid Business Models Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing details and interaction services. Major company segments of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major products include books, regulars, online media, exhibits, research reports and so on. United Daily News Group A Building Hybrid Business Models Case Study Help has become a specialized information service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and United Daily News Group A Building Hybrid Business Models Case Study Solution in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
United Daily News Group A Building Hybrid Business Models Case Study Analysis has particular strengths that can be utilized to minimize the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of United Daily News Group A Building Hybrid Business Models Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong financial position enables the business to think about numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which could increase constraints for the company in implementing its advancement program. The weaknesses of United Daily News Group A Building Hybrid Business Models Case Study Analysis are offered 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 highly relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting United Daily News Group A Building Hybrid Business Models Case Study Analysis as well, but the growth could be restored by availing particular chances presented in the market. The market opportunities 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 might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has positioned certain risks to United Daily News Group A Building Hybrid Business Models Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of United Daily News Group A Building Hybrid Business Models Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry along with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. Nevertheless, the overall financial performance of the company might be examined by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of United Daily News Group A Building Hybrid Business Models Case Study Solution is growing and the business is quite effective in attracting a a great deal of customers at a potential cost.
Along with it, the second chart which reveals the annual development in the United Daily News Group A Building Hybrid Business Models Case Study Analysis overall assets, reveals that the business is quite efficient in including value to its assets through its revenues. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of total profits of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the performance of the company 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 could have a significant effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful materials etc. China has the greatest population on the planet with a high population development, revealing the increasing number of customers of the United Daily News Group A Building Hybrid Business Models Case Study Help. However, the consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting United Daily News Group A Building Hybrid Business Models Case Study Help includes 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 damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market 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, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the United Daily News Group A Building Hybrid Business Models Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market 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 files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of United Daily News Group A Building Hybrid Business Models Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as United Daily News Group A Building Hybrid Business Models Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 business sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant solution to prevent the decreasing market growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to first collects the data related to the consumer need, the prospective markets, the federal government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a threat to the business's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
