Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Solution and Analysis
Intro
Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing information and interaction services. Major company sections of the company include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports and so on. Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis has become a specialized info provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis has specific strengths that can be utilized to lower the risks, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the company to think about numerous advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help as well, but the development could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has posed particular hazards to Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market together with presence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total incomes of Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in drawing in a large number of consumers at a potential cost.
Together with it, the 2nd graph which reveals the yearly growth in the Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis total properties, reveals that the business is quite efficient in adding value to its possessions through its profits. The growth in assets shows that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the circulation of overall revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books impact the overall company at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the danger of replacement 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 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 significant suppliers of the Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Viridity Energy The Challenge And Opportunity Of Promoting Clean Energy Solutions 2 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the decreasing market growth. Therefore, intro of digital publishing could prove to be an instant option with low quantity of threat for the business. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to first gathers the information related to the customer demand, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a threat to the company's long term presence, however the situation can be controlled by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
