Vietnam A Concise Profile 2014 2 Case Study Solution and Analysis
Introduction
Vietnam A Concise Profile 2014 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Vietnam A Concise Profile 2014 2 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 scenario? Do the long valuable experience, technical resources and the capabilities of the business 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
Vietnam A Concise Profile 2014 2 Case Study Help has certain strengths that can be used to decrease the risks, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Vietnam A Concise Profile 2014 2 Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position enables the company to consider a number of advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase restraints for the business in implementing its advancement program. The weak points of Vietnam A Concise Profile 2014 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing because 2008, impacting Vietnam A Concise Profile 2014 2 Case Study Analysis as well, but the growth might be revived by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed specific threats to Vietnam A Concise Profile 2014 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Vietnam A Concise Profile 2014 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger 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, etc.
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly total revenues of Vietnam A Concise Profile 2014 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather effective in drawing in a big number of customers at a potential cost.
Together with it, the 2nd chart which shows the annual development in the Vietnam A Concise Profile 2014 2 Case Study Analysis overall assets, reveals that the business is rather efficient in adding worth to its properties through its incomes. The development in assets shows that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis regarding the circulation of overall earnings of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of customers of the Vietnam A Concise Profile 2014 2 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Vietnam A Concise Profile 2014 2 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized 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. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the files presented in the virtual libraries on certain websites. The altering consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers 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 likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Vietnam A Concise Profile 2014 2 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Vietnam A Concise Profile 2014 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Vietnam A Concise Profile 2014 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the decreasing industry development. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must initially gathers the data related to the consumer demand, the prospective markets, the federal government policies and the information connected to the rivals provided in the market. After that, the business must choose one potential section for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the business need to go for the preliminary offering. If the initial offering shows a success, the company must choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a hazard to the company's long term presence, but the scenario can be managed by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
