Urban Arts Institute Case Study Solution and Analysis
Urban Arts Institute Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing info and communication services. Major business sectors of the company consist of; books, regulars, consultancy and distribution. The company has a huge item portfolio and its major items include books, periodicals, online media, exhibits, research study reports and so on. Urban Arts Institute Case Study Solution has actually become a specialized information service provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Urban Arts Institute Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Urban Arts Institute Case Study Analysis has certain strengths that can be utilized to minimize the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Urban Arts Institute Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its clients.
• Strong financial position allows the company to think about a number of advancement opportunities without any worry of raising fund externally.
Together with the strengths, the company has specific weaknesses which might increase restraints 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 firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is decreasing given that 2008, affecting Urban Arts Institute Case Study Analysis as well, however the development could be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
The altering macro patterns in the market and increasing competitors in the publishing market has positioned particular threats to Urban Arts Institute Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Urban Arts Institute Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular techniques like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry together with existence of high competition increases the threat of losing the consumer base.
Due to lack of information, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual overall revenues of Urban Arts Institute Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a prospective price.
Along with it, the second graph which reveals the annual growth in the Urban Arts Institute Case Study Help overall possessions, shows that the business is rather effective in including value to its possessions through its profits. The growth in possessions reveals that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the distribution of total revenues of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a potential development to achieve its future development goal.
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Urban Arts Institute Case Study Solution business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative products and so on. China has the highest population in the world with a high population development, revealing the increasing number of consumers of the Urban Arts Institute Case Study Analysis. However, the customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Urban Arts Institute Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Urban Arts Institute Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 requires high quality files at competitive prices.
CMP runs in a highly competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Urban Arts Institute Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the very same period, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in numerous market sectors, with a significant focus on academic publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Urban Arts Institute Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business need an instant solution to prevent the declining market development. For that reason, intro of digital publishing might prove to be an immediate service with low quantity of risk for the company. The business could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first collects the information related to the consumer need, the possible markets, the government policies and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing considering that 2008, revealing a threat to the business's long term existence, but the situation can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.