Virginia Class Submarine Two For Four In 2012 A 2 Case Study Solution and Analysis
Introduction
Virginia Class Submarine Two For Four In 2012 A 2 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and Virginia Class Submarine Two For Four In 2012 A 2 Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Virginia Class Submarine Two For Four In 2012 A 2 Case Study Solution has specific strengths that can be made use of to lower the hazards, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Virginia Class Submarine Two For Four In 2012 A 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position permits the company to consider numerous advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Virginia Class Submarine Two For Four In 2012 A 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, affecting Virginia Class Submarine Two For Four In 2012 A 2 Case Study Solution as well, however the development could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has positioned specific dangers to Virginia Class Submarine Two For Four In 2012 A 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Virginia Class Submarine Two For Four In 2012 A 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of Virginia Class Submarine Two For Four In 2012 A 2 Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a big number of customers at a prospective cost.
In addition to it, the second graph which reveals the yearly growth in the Virginia Class Submarine Two For Four In 2012 A 2 Case Study Analysis total properties, reveals that the business is rather effective in adding value to its properties through its revenues. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the circulation of total incomes of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting Virginia Class Submarine Two For Four In 2012 A 2 Case Study Analysis company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total 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 development, the consumer's choices towards reading useful materials and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Virginia Class Submarine Two For Four In 2012 A 2 Case Study Analysis. However, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Virginia Class Submarine Two For Four In 2012 A 2 Case Study Help consists of the concerns of environmental 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 should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market 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 competition for CMP.
Bargaining Power of Provider.
The major providers of the Virginia Class Submarine Two For Four In 2012 A 2 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely 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. Significant competitors of Virginia Class Submarine Two For Four In 2012 A 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also 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 opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an instant service to avoid the declining industry development. Introduction of digital publishing could prove to be an instant service with low quantity of threat for the business. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should initially gathers the data related to the customer demand, the possible markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
