Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution and Analysis
Introduction
Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Analysis 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 info, processing information and communication services. Major organisation sections 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, exhibitions, research study reports and so on. Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution has become a specialized information provider and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation 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 valuable experience, technical resources and the capabilities of the company 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
Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Analysis has specific strengths that can be made use of to lower the dangers, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong monetary position permits the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution too, however the development could be revived by availing certain chances provided in the market. The market chances 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 could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has posed particular threats to Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular strategies like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry together with presence of high competition increases the danger of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly overall earnings of Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a big number of consumers at a potential price.
Together with it, the 2nd chart which reveals the annual growth in the Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Help overall possessions, reveals that the company is rather 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 overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the circulation of total earnings of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces affecting Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Analysis service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Analysis in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the total company at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading useful materials and so on. China has the greatest population in the world with a high population development, showing the increasing number of customers of the Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Help. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Users Of The World Unite The Challenges And Opportunities Of Social Media 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 required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the virtual libraries on particular websites. The altering customer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market 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. Major rivals of Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a major focus on educational publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Users Of The World Unite The Challenges And Opportunities Of Social Media 2 Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective 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 existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an immediate service to avoid the declining industry growth. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first gathers the information associated with the consumer demand, the prospective markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the business should choose one prospective section for its preliminary offering. It ought to gather research that how it could distinguish its digital publishing from the existing competitors' products. The actions above the company must go for the preliminary offering. If the preliminary offering proves a success, the business ought to opt for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a danger to the company's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
