Upm Rafsec Rfid Venture 2004 Case Study Solution and Analysis
Introduction
Upm Rafsec Rfid Venture 2004 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and Upm Rafsec Rfid Venture 2004 Case Study Analysis in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction 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 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
Upm Rafsec Rfid Venture 2004 Case Study Help has particular strengths that can be utilized to reduce the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Upm Rafsec Rfid Venture 2004 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the business to think about numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restraints for the business in executing its advancement program. The weak points of Upm Rafsec Rfid Venture 2004 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting Upm Rafsec Rfid Venture 2004 Case Study Solution as well, but the development could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has posed particular risks to Upm Rafsec Rfid Venture 2004 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Upm Rafsec Rfid Venture 2004 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total earnings of Upm Rafsec Rfid Venture 2004 Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite effective in bring in a large number of clients at a prospective rate.
In addition to it, the second graph which reveals the annual development in the Upm Rafsec Rfid Venture 2004 Case Study Analysis overall possessions, reveals that the business is rather efficient in adding worth to its assets through its incomes. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis relating to the distribution of overall incomes of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset 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 Celebration of China. It might be said that the overall political forces affecting CMP service 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 general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative materials etc. China has the highest population in the world with a high population growth, revealing the increasing variety of customers of the Upm Rafsec Rfid Venture 2004 Case Study Analysis. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Upm Rafsec Rfid Venture 2004 Case Study Solution includes the issues 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 utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence 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, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Upm Rafsec Rfid Venture 2004 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry 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 competitors of Upm Rafsec Rfid Venture 2004 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 business segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market 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 need an instant option to prevent the declining industry growth. Introduction of digital publishing might prove to be an instant service with low amount of danger for the business. Nevertheless, the business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the customer demand, the possible markets, the federal government policies and the data associated with the competitors provided in the market. After that, the business ought to choose one potential sector for its initial offering. It should collect research that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the company must go for the preliminary offering. If the initial offering shows a success, the company should go for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a danger to the company's long term existence, however the situation can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
