Universal Print Systems Limited Exploring Operations Strategy Options Case Study Solution and Analysis
Introduction
Universal Print Systems Limited Exploring Operations Strategy Options Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing details and communication services. Significant service segments of the company include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports and so on. Universal Print Systems Limited Exploring Operations Strategy Options Case Study Analysis has actually ended up being a specialized information supplier and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help in specific. These elements include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of 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 capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help has certain strengths that can be utilized to minimize the hazards, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position allows the company to consider several advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase constraints for the business in implementing its development program. The weak points of Universal Print Systems Limited Exploring Operations Strategy Options Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Universal Print Systems Limited Exploring Operations Strategy Options Case Study Solution as well, however the development might be restored by availing specific chances presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned specific hazards to Universal Print Systems Limited Exploring Operations Strategy Options Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly overall profits of Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is quite effective in drawing in a large number of clients at a possible cost.
In addition to it, the 2nd chart which shows the annual development in the Universal Print Systems Limited Exploring Operations Strategy Options Case Study Analysis overall properties, shows that the company is quite effective in adding value to its possessions through its earnings. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the circulation of overall incomes of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Universal Print Systems Limited Exploring Operations Strategy Options Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help. However, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Universal Print Systems Limited Exploring Operations Strategy Options 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 required to be disposable 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 concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in 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 marketplace.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Universal Print Systems Limited Exploring Operations Strategy Options Case Study Solution include the suppliers 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 Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Universal Print Systems Limited Exploring Operations Strategy Options Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus 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 items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business need an instant solution to prevent the decreasing market development. Introduction of digital publishing could prove to be an instant solution with low amount of danger for the company. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data related to the consumer need, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business must 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 industry is declining considering that 2008, showing a threat to the company's long term existence, however the circumstance can be managed by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
