Victoria Heavy Equipment Company Case Study Solution and Analysis
Victoria Heavy Equipment Company Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Victoria Heavy Equipment Company Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities 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?
Victoria Heavy Equipment Company Case Study Analysis has certain strengths that can be used to reduce the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Victoria Heavy Equipment Company Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position permits the business to consider several advancement chances with no fear of raising fund externally.
Along with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its development program. The weak points of Victoria Heavy Equipment Company Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, 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 needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
The growth of the publishing market is declining because 2008, impacting Victoria Heavy Equipment Company Case Study Analysis as well, but the development might be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competitors in the publishing market has posed particular threats to Victoria Heavy Equipment Company Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Victoria Heavy Equipment Company Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the customer base.
The business has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be calculated. Nevertheless, the total financial efficiency of the business might be analyzed by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Victoria Heavy Equipment Company Case Study Analysis is growing and the company is rather efficient in bring in a large number of customers at a potential cost.
Together with it, the second graph which reveals the annual development in the Victoria Heavy Equipment Company Case Study Help overall assets, reveals that the business is rather effective in including value to its possessions through its earnings. The development in properties reveals that the total value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis regarding the distribution of total profits of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a possible development to achieve its future advancement goal.
PESTEL analysis could be carried out to discover the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the frame of mind 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 stated that the overall political forces affecting Victoria Heavy Equipment Company Case Study Solution service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Victoria Heavy Equipment Company 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 impact the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the total service at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful materials etc. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Victoria Heavy Equipment Company Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Victoria Heavy Equipment Company Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk 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. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the danger of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Victoria Heavy Equipment Company Case Study Help consist of the suppliers of the paper for releasing files. 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.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
CMP runs in a highly competitive market 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. Major competitors of Victoria Heavy Equipment Company Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Victoria Heavy Equipment Company Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the company require an immediate option to prevent the decreasing market development. The company might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first gathers the information related to the consumer demand, the potential markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the company must choose one potential section for its initial offering. It needs to gather research study that how it could separate its digital publishing from the existing competitors' products. The actions above the business must go for the initial offering. The company needs to go for the other markets if the initial offering proves a success. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is declining since 2008, showing a hazard to the company's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.