Urban Water Partners B 2 Case Study Solution and Analysis
Intro
Urban Water Partners B 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Urban Water Partners B 2 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Urban Water Partners B 2 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 provided as follows;
• The long term experience of Urban Water Partners B 2 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the company to consider several development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of Urban Water Partners B 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Urban Water Partners B 2 Case Study Analysis as well, however the growth might be restored by availing specific chances presented in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific dangers to Urban Water Partners B 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Urban Water Partners B 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the market along with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the annual overall earnings of Urban Water Partners B 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in bring in a large number of clients at a prospective rate.
Together with it, the second graph which reveals the yearly development in the Urban Water Partners B 2 Case Study Help overall properties, shows that the company is quite effective in adding worth to its possessions through its profits. The development in properties shows that the total worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis concerning the circulation of overall incomes of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors 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 company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products etc. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Urban Water Partners B 2 Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Urban Water Partners B 2 Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Urban Water Partners B 2 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Urban Water Partners B 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a major focus on instructional publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Urban Water Partners B 2 Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Urban Water Partners B 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an instant option to prevent the decreasing industry development. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to initially gathers the data related to the customer demand, the potential markets, the federal government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a hazard to the business's long term presence, however the situation can be managed by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
