Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Solution and Analysis
Introduction
Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing details and interaction services. Significant business sections of the company include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports and so on. Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Solution has ended up being a specialized details service provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis in specific. These aspects include;
• Entryway of the new publishing firms 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 several concerns 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 business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis has specific strengths that can be used to decrease the dangers, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong financial position permits the company to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Solution too, however the growth might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has positioned certain dangers to Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. However, the overall monetary performance of the business could be evaluated by using the charts given in the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis is growing and the business is rather efficient in bring in a a great deal of clients at a potential price.
In addition to it, the 2nd chart which shows the yearly development in the Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis total assets, reveals that the business is rather efficient in adding value to its assets through its revenues. The growth in assets reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the circulation of overall profits of the company. Huge 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 business might move towards other service sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Help 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 non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Upgrading The Economy Industrial Policy And Taiwans Semiconductor Industry 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the prominent players in the publishing industry 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 market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an immediate solution to prevent the decreasing market development. Therefore, introduction of digital publishing could prove to be an immediate service with low amount of threat for the company. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the data connected to the customer demand, the potential markets, the government guidelines and the data associated with the rivals provided in the market. After that, the business should decide one possible segment for its preliminary offering. It should collect research study that how it might separate its digital publishing from the existing rivals' products. After all the steps above the business need to opt for the initial offering. If the preliminary offering shows a success, the company needs to opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, revealing a risk to the company's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
