United Daily News Group C Udn Shopping What Happened Case Study Solution and Analysis
Introduction
United Daily News Group C Udn Shopping What Happened Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing details and interaction services. Major business sections of the business consist of; books, regulars, consultancy and distribution. The company has a large item portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports etc. United Daily News Group C Udn Shopping What Happened Case Study Analysis has actually ended up being a specialized information service provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and United Daily News Group C Udn Shopping What Happened Case Study Help in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 made use of to strive for 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 C Udn Shopping What Happened Case Study Analysis has particular strengths that can be utilized to decrease the dangers, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of United Daily News Group C Udn Shopping What Happened Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position permits the business to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of United Daily News Group C Udn Shopping What Happened Case Study Solution are given 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 extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, affecting United Daily News Group C Udn Shopping What Happened Case Study Analysis as well, however the growth might be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has postured specific risks to United Daily News Group C Udn Shopping What Happened Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of United Daily News Group C Udn Shopping What Happened Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total incomes of United Daily News Group C Udn Shopping What Happened Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is quite efficient in drawing in a large number of customers at a prospective cost.
Along with it, the second graph which shows the annual growth in the United Daily News Group C Udn Shopping What Happened Case Study Help overall properties, shows that the business is quite efficient in including worth to its properties through its earnings. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis concerning the circulation of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP company are high. The federal government policies regarding the publishing sector are likewise 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 consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting United Daily News Group C Udn Shopping What Happened Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed 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 guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the digital libraries on certain sites. The changing customer choices towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the United Daily News Group C Udn Shopping What Happened Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall 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 existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence 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 Daily News Group C Udn Shopping What Happened Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as United Daily News Group C Udn Shopping What Happened Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate solution to avoid the declining industry development. The company might also 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 should initially gathers the information related to the customer need, the potential markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a risk to the company's long term existence, however the situation can be controlled by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
