Urbi And The City Licensee Managers 2 Case Study Solution and Analysis
Introduction
Urbi And The City Licensee Managers 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing info and interaction services. Major business sectors of the company consist of; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major products consist of books, regulars, online media, exhibits, research study reports and so on. Urbi And The City Licensee Managers 2 Case Study Analysis has actually ended up being a specialized info supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and Urbi And The City Licensee Managers 2 Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• 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 several 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 abilities of the business could be made use of 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
Urbi And The City Licensee Managers 2 Case Study Help has certain strengths that can be used to reduce the hazards, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Urbi And The City Licensee Managers 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the company to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its development program. The weak points of Urbi And The City Licensee Managers 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company 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 must propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting Urbi And The City Licensee Managers 2 Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured certain dangers to Urbi And The City Licensee Managers 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Urbi And The City Licensee Managers 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual total earnings of Urbi And The City Licensee Managers 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a possible cost.
In addition to it, the second chart which reveals the annual growth in the Urbi And The City Licensee Managers 2 Case Study Analysis overall assets, reveals that the company is rather efficient in including value to its properties through its revenues. The development in possessions reveals that the overall worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the distribution of total revenues of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the total political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Urbi And The City Licensee Managers 2 Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies connected to the import of books impact the general company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out helpful products etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Urbi And The City Licensee Managers 2 Case Study Solution. However, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Urbi And The City Licensee Managers 2 Case Study Help includes 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 disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Urbi And The City Licensee Managers 2 Case Study Help include 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Urbi And The City Licensee Managers 2 Case Study Help consist of;.
• Chemical Industry 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 might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service segments to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant service to avoid the decreasing industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should initially gathers the information related to the customer demand, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a risk to the company's long term presence, however the situation can be controlled by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
