Urban Arts Institute Case Study Solution and Analysis
Intro
Urban Arts Institute Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing information and interaction services. Significant organisation sectors of the company consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. Urban Arts Institute Case Study Solution has become a specialized information provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Urban Arts Institute Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Urban Arts Institute Case Study Solution has particular strengths that can be made use of to lower the risks, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Urban Arts Institute 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 successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the company to consider several development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Urban Arts Institute Case Study Solution are offered 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 needs to propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Urban Arts Institute Case Study Analysis as well, however the growth might be restored by availing certain chances presented in the market. The market chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular threats to Urban Arts Institute Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Urban Arts Institute Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market along with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be determined. However, the general financial efficiency of the business might be examined by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Urban Arts Institute Case Study Solution is growing and the business is rather efficient in attracting a a great deal of customers at a possible rate.
In addition to it, the second graph which shows the annual growth in the Urban Arts Institute Case Study Analysis total possessions, shows that the business is rather effective in adding value to its assets through its revenues. The development in assets shows that the total worth of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis relating to the distribution of overall revenues of the company. Major part of the profits 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 business segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative materials and so on. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Urban Arts Institute Case Study Solution. The customer choices 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 consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Urban Arts Institute Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Urban Arts Institute Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Urban Arts Institute Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in different market sections, with a significant concentrate on academic publications. CIP acts as a hazard 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 marketplace share of Urban Arts Institute Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Urban Arts Institute Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an instant solution to prevent the declining industry growth. Introduction of digital publishing might prove to be an immediate solution with low amount of threat for the company. However, the company might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should first collects the information related to the customer need, the prospective markets, the federal government guidelines and the information associated with the rivals presented in the market. After that, the business needs to decide one possible sector for its initial offering. It needs to collect research that how it might separate its digital publishing from the existing rivals' products. The actions above the company need to go for the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term presence, but the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
