Victorian Desalination Project The White Elephant Case Study Solution and Analysis
Introduction
Victorian Desalination Project The White Elephant Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Victorian Desalination Project The White Elephant Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the abilities of the business 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
Victorian Desalination Project The White Elephant Case Study Solution has certain strengths that can be used to reduce the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Victorian Desalination Project The White Elephant Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position enables the company to think about a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Victorian Desalination Project The White Elephant Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways 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 dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, impacting Victorian Desalination Project The White Elephant Case Study Solution too, but the growth might be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has presented certain hazards to Victorian Desalination Project The White Elephant Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Victorian Desalination Project The White Elephant Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific strategies like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the market together with presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual total earnings of Victorian Desalination Project The White Elephant Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in drawing in a large number of clients at a potential price.
Together with it, the second chart which shows the annual growth in the Victorian Desalination Project The White Elephant Case Study Analysis total properties, shows that the business is quite effective in including worth to its possessions through its incomes. The growth in possessions shows that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the distribution of total profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces affecting Victorian Desalination Project The White Elephant Case Study Help company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Victorian Desalination Project The White Elephant Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the total service at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful materials and so on. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Victorian Desalination Project The White Elephant Case Study Analysis. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing could decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Victorian Desalination Project The White Elephant Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the virtual libraries on certain sites. The altering consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Victorian Desalination Project The White Elephant Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Victorian Desalination Project The White Elephant Case Study Help include;.
• Chemical Industry 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 could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the decreasing industry growth. For that reason, intro of digital publishing could prove to be an immediate solution with low quantity of risk for the company. However, the business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data related to the customer need, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a danger to the business's long term presence, however the scenario can be managed by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
