Urban Water Partners A Case Study Solution and Analysis
Introduction
Urban Water Partners A Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing information and communication services. Significant organisation sections of the business consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. Urban Water Partners A Case Study Help has ended up being a specialized info company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and Urban Water Partners A Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the abilities of the company could be used 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
Urban Water Partners A Case Study Solution has certain strengths that can be utilized to minimize the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Urban Water Partners A Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position enables the company to think about several advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Urban Water Partners A Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard 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 expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining because 2008, impacting Urban Water Partners A Case Study Help as well, however the development might be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned particular risks to Urban Water Partners A Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Urban Water Partners A Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be computed. Nevertheless, the overall financial performance of the company could be examined by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Urban Water Partners A Case Study Solution is growing and the business is quite efficient in bring in a a great deal of clients at a prospective cost.
In addition to it, the second graph which shows the annual growth in the Urban Water Partners A Case Study Help overall possessions, reveals that the company is quite efficient in including worth to its assets through its profits. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis concerning the distribution of overall profits of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various 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 substantial impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity 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 likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. 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 checking out helpful products and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Urban Water Partners A Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Urban Water Partners A Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Urban Water Partners A Case Study Analysis consist of 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 provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals 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 highest market share in the Chinese publishing market. Significant rivals of Urban Water Partners A Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded 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 among the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth 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 brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant solution to prevent the decreasing market growth. 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 item portfolio, the company must initially gathers the data related to the consumer need, the prospective markets, the government policies and the information connected to the rivals presented in the market. After that, the company must decide one prospective segment for its initial offering. It must gather research study that how it could distinguish its digital publishing from the existing competitors' items. The steps above the business need to go for the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, revealing a danger to the business's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
