Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution and Analysis
Introduction
Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing info and interaction services. Significant service sections of the business consist of; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports and so on. Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution has actually ended up being a specialized information provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Help in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Help has certain strengths that can be made use of to decrease the risks, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position allows the business to consider a number of development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which might increase constraints for the business in implementing its development program. The weak points of Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Help also, however the development might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular hazards to Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market in addition to existence of high competition increases the danger of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly overall earnings of Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is rather effective in attracting a big number of consumers at a prospective cost.
Together with it, the second graph which shows the annual development in the Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution total possessions, shows that the business is quite efficient in including value to its possessions through its earnings. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data might be the analysis regarding the distribution of total earnings of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out informative materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of consumers of the Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a major concentrate on instructional publications. 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 could wean the market share of Vietnams Embrace Of Ict For Economic Development Success And Future Challenges Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Vietnams Embrace Of Ict For Economic Development Success And Future Challenges 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.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the declining industry development. For that reason, intro of digital publishing might show to be an instant service with low amount of danger for the business. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the data associated with the consumer need, the potential markets, the government policies and the data related to the rivals presented in the market. After that, the company needs to decide one possible section for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the company need to go for the initial offering. The company should go for the other markets if the initial offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
