Urban Water Partners A 2 Case Study Solution and Analysis
Intro
Urban Water Partners A 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing information and communication services. Significant organisation sections of the business consist of; books, regulars, consultancy and distribution. The company has a vast item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports and so on. Urban Water Partners A 2 Case Study Help has become a specialized details company and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing market in general and Urban Water Partners A 2 Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised a number of 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 strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Urban Water Partners A 2 Case Study Help has particular strengths that can be made use of to lower the dangers, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Urban Water Partners A 2 Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the company to consider several development chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase constraints for the company in implementing its development program. The weaknesses of Urban Water Partners A 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Urban Water Partners A 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 might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain risks to Urban Water Partners A 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Urban Water Partners A 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total revenues of Urban Water Partners A 2 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is rather efficient in attracting a big number of consumers at a prospective rate.
In addition to it, the 2nd chart which shows the yearly growth in the Urban Water Partners A 2 Case Study Help total possessions, shows that the business is quite efficient in adding value to its assets through its revenues. The growth in possessions reveals that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the offered information could be the analysis relating to the circulation of total earnings of the company. Major part of the earnings 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 company sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Urban Water Partners A 2 Case Study Solution organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful materials etc. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Urban Water Partners A 2 Case Study Help. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Urban Water Partners A 2 Case Study Solution consists of the concerns of ecological neighborhoods over the use 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 needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Urban Water Partners A 2 Case Study Analysis include the providers of the paper for publishing documents. 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 Purchaser.
Haggling power of buyer in the publishing market 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 files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Urban Water Partners A 2 Case Study Help 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 company sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining industry development. For that reason, intro of digital publishing might show to be an immediate service with low quantity of danger for the company. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should first gathers the information related to the consumer demand, the possible markets, the federal government regulations and the data related to the rivals provided in the market. After that, the company ought to choose one potential segment for its preliminary offering. It ought to gather research study that how it could distinguish its digital publishing from the existing rivals' products. The steps above the business should go for the preliminary offering. If the initial offering proves a success, the company should opt for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term existence, but the circumstance can be managed by thinking about 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 danger of failure for entrance in the brand-new markets.
