Vice Media Competitive Advantage And Global Expansion Case Study Solution and Analysis
Introduction
Vice Media Competitive Advantage And Global Expansion Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting details, processing information and communication services. Significant business sectors of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports etc. Vice Media Competitive Advantage And Global Expansion Case Study Solution has actually become a specialized info provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Vice Media Competitive Advantage And Global Expansion Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement 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 company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Vice Media Competitive Advantage And Global Expansion Case Study Solution has certain strengths that can be utilized to minimize the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Vice Media Competitive Advantage And Global Expansion Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong financial position permits the business to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the business in executing its development program. The weak points of Vice Media Competitive Advantage And Global Expansion Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Vice Media Competitive Advantage And Global Expansion Case Study Analysis as well, however the development could be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually posed certain threats to Vice Media Competitive Advantage And Global Expansion Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Vice Media Competitive Advantage And Global Expansion Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market along with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total incomes of Vice Media Competitive Advantage And Global Expansion Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in attracting a large number of customers at a possible cost.
In addition to it, the 2nd chart which shows the annual development in the Vice Media Competitive Advantage And Global Expansion Case Study Solution total possessions, reveals that the business is quite efficient in including value to its properties through its profits. The development in assets shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis regarding the distribution of overall profits of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Vice Media Competitive Advantage And Global Expansion Case Study Analysis company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Vice Media Competitive Advantage And Global Expansion Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the general organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Vice Media Competitive Advantage And Global Expansion Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies 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 Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Vice Media Competitive Advantage And Global Expansion Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider 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 buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Vice Media Competitive Advantage And Global Expansion Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in numerous market sectors, with a major focus on academic publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Vice Media Competitive Advantage And Global Expansion Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
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 items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an instant service to prevent the declining industry growth. Therefore, introduction of digital publishing might prove to be an immediate option with low quantity of threat for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first collects the data related to the customer demand, the prospective markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, revealing a danger to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
