United Daily News Group B Udn Com What Happened Case Study Solution and Analysis
Intro
United Daily News Group B Udn Com What Happened Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and United Daily News Group B Udn Com What Happened Case Study Analysis in specific. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised several questions 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 utilized 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
United Daily News Group B Udn Com What Happened Case Study Analysis has specific strengths that can be utilized to lower the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of United Daily News Group B Udn Com What Happened Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position enables the business to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of United Daily News Group B Udn Com What Happened Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, affecting United Daily News Group B Udn Com What Happened Case Study Solution as well, however the development could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented specific hazards to United Daily News Group B Udn Com What Happened Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of United Daily News Group B Udn Com What Happened Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market in addition to existence of high competitors increases the risk of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be determined. The general monetary efficiency of the company might be evaluated by utilizing the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of United Daily News Group B Udn Com What Happened Case Study Solution is growing and the company is rather efficient in attracting a large number of customers at a potential price.
Along with it, the second chart which reveals the yearly development in the United Daily News Group B Udn Com What Happened Case Study Solution total possessions, shows that the business is quite efficient in adding worth to its possessions through its incomes. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the circulation of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the business and the recent 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 substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the United Daily News Group B Udn Com What Happened Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall business at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are shifting 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 impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting United Daily News Group B Udn Com What Happened Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the files presented in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the United Daily News Group B Udn Com What Happened Case Study Analysis consist of the suppliers 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 supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of United Daily News Group B Udn Com What Happened Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a significant focus on academic publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of United Daily News Group B Udn Com What Happened Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an immediate service to prevent the declining market development. For that reason, introduction of digital publishing might show to be an immediate option with low amount of threat for the company. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to initially collects the data associated with the consumer need, the possible markets, the federal government regulations and the data associated with the competitors presented in the market. After that, the company should choose one possible segment for its preliminary offering. It ought to gather research study that how it might distinguish its digital publishing from the existing competitors' items. After all the steps above the company need to go for the preliminary offering. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a risk to the company's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
