Vietnam Sustaining The Growth Of An Asian Tiger Case Study Solution and Analysis
Intro
Vietnam Sustaining The Growth Of An Asian Tiger Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Vietnam Sustaining The Growth Of An Asian Tiger Case Study Analysis in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Vietnam Sustaining The Growth Of An Asian Tiger Case Study Solution has particular strengths that can be made use of to minimize the hazards, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Vietnam Sustaining The Growth Of An Asian Tiger Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position enables the company to think about numerous development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weak points of Vietnam Sustaining The Growth Of An Asian Tiger Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Vietnam Sustaining The Growth Of An Asian Tiger Case Study Help as well, however the development could be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually postured certain risks to Vietnam Sustaining The Growth Of An Asian Tiger Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Vietnam Sustaining The Growth Of An Asian Tiger Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly overall revenues of Vietnam Sustaining The Growth Of An Asian Tiger Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is rather effective in attracting a big number of clients at a prospective cost.
Along with it, the 2nd graph which reveals the annual growth in the Vietnam Sustaining The Growth Of An Asian Tiger Case Study Solution overall assets, shows that the company is quite effective in including value to its assets through its revenues. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the circulation of overall revenues of the company. Major part of the incomes 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 service sectors with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is offered 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 extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting Vietnam Sustaining The Growth Of An Asian Tiger Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative materials etc. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the Vietnam Sustaining The Growth Of An Asian Tiger Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Vietnam Sustaining The Growth Of An Asian Tiger Case Study Analysis consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. 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 Provider.
The major suppliers of the Vietnam Sustaining The Growth Of An Asian Tiger Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
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 greatest market share in the Chinese publishing market. Major rivals of Vietnam Sustaining The Growth Of An Asian Tiger Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Vietnam Sustaining The Growth Of An Asian Tiger Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 business segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business require an instant service to prevent the decreasing industry development. For that reason, introduction of digital publishing could prove to be an instant option with low quantity of threat for the business. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first collects the data associated with the customer need, the potential markets, the federal government regulations and the information related to the competitors provided in the market. After that, the company should decide one possible section for its preliminary offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the company need to choose the initial offering. The business should go for the other markets if the initial offering shows a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, revealing a threat to the business's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
