Universal Display Corporation Go Long Or Short Case Study Solution and Analysis
Introduction
Universal Display Corporation Go Long Or Short Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing info and communication services. Major business sectors of the business consist of; books, regulars, consultancy and circulation. The business has a large item portfolio and its major products include books, regulars, online media, exhibits, research study reports etc. Universal Display Corporation Go Long Or Short Case Study Analysis has ended up being a specialized info service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and Universal Display Corporation Go Long Or Short Case Study Analysis in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Universal Display Corporation Go Long Or Short Case Study Help has certain strengths that can be utilized to decrease the threats, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Universal Display Corporation Go Long Or Short Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong monetary position allows the business to think about a number of development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase restraints for the company in executing its development program. The weaknesses of Universal Display Corporation Go Long Or Short Case Study Solution are offered as follows;
• Despite of being a science and innovation 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 needs to propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining because 2008, affecting Universal Display Corporation Go Long Or Short Case Study Help as well, but the growth could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually posed certain hazards to Universal Display Corporation Go Long Or Short Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Universal Display Corporation Go Long Or Short Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be determined. The total financial efficiency of the business might be examined by using the charts offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Universal Display Corporation Go Long Or Short Case Study Help is growing and the business is quite efficient in attracting a a great deal of consumers at a prospective rate.
Together with it, the second chart which shows the annual growth in the Universal Display Corporation Go Long Or Short Case Study Help overall assets, reveals that the business is quite effective in adding value to its possessions through its earnings. The growth in properties shows that the total value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis relating to the circulation of overall profits of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Universal Display Corporation Go Long Or Short Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies related to the import of books impact the general organisation at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Universal Display Corporation Go Long Or Short Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents presented in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Universal Display Corporation Go Long Or Short Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Universal Display Corporation Go Long Or Short Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in numerous market sectors, with a major focus on educational publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Universal Display Corporation Go Long Or Short Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Universal Display Corporation Go Long Or Short Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an instant option to avoid the decreasing market development. Introduction of digital publishing might prove to be an immediate option with low quantity of danger for the business. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must first gathers the data connected to the consumer demand, the possible markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the business should choose one possible segment for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing competitors' items. The actions above the business should go for the initial offering. If the preliminary offering proves a success, the business needs to choose the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a danger to the business's long term existence, however the situation can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
