Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Solution and Analysis
Introduction
Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Analysis in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be used 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 Case Study Solution has certain strengths that can be utilized to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position permits the company to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points 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 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, impacting Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Solution also, but the development could be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has actually presented specific risks to Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall earnings of Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in bring in a big number of consumers at a possible cost.
Together with it, the second chart which reveals the yearly development in the Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Analysis total properties, shows that the company is quite effective in including worth to its properties through its profits. The development in possessions reveals that the total value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis concerning the circulation of overall incomes of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the general political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies related to the import of books impact the total company at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Users Of The World Unite The Challenges And Opportunities Of Social Media Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant solution to prevent the decreasing industry growth. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should first collects the data related to the consumer need, the prospective markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a danger to the company's long term presence, but the situation can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
