Value Line Publishing Case Study Solution and Analysis
Value Line Publishing Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing info and interaction services. Major service sectors of the business consist of; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant products include books, periodicals, online media, exhibits, research reports and so on. Value Line Publishing Case Study Analysis has actually ended up being a specialized information supplier and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Value Line Publishing Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in particular. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of 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 capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Value Line Publishing Case Study Analysis has particular strengths that can be used to reduce the hazards, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Value Line Publishing Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the company to think about a number of development chances without any fear of raising fund externally.
Along with the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Value Line Publishing Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is declining considering that 2008, affecting Value Line Publishing Case Study Solution as well, however the development might be revived by availing particular chances presented in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
The altering macro trends in the market and increasing competitors in the publishing industry has positioned certain threats to Value Line Publishing Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Value Line Publishing Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the consumer base.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual total revenues of Value Line Publishing Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in bring in a big number of customers at a prospective price.
Together with it, the second chart which shows the yearly growth in the Value Line Publishing Case Study Analysis total possessions, reveals that the company is quite efficient in adding worth to its assets through its incomes. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the given data might be the analysis regarding the distribution of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a potential development to accomplish its future development objective.
PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Value Line Publishing Case Study Help company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out useful materials and so on. China has the highest population on the planet with a high population development, showing the increasing variety of consumers of the Value Line Publishing Case Study Analysis. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces affecting Value Line Publishing Case Study Analysis 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 non reusable and the ink used while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the files presented in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market 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 competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Value Line Publishing Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 purchasers requires high quality files at competitive prices.
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 Value Line Publishing Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an immediate option to prevent the declining industry growth. Therefore, intro of digital publishing might show to be an instant option with low amount of threat for the business. Nevertheless, the company could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to initially collects the information related to the consumer demand, the prospective markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
The growth of the publishing market is decreasing considering that 2008, showing a threat to the company's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.