Viva Macau B Case Study Solution and Analysis
Intro
Viva Macau B Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and Viva Macau B Case Study Analysis in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized 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
Viva Macau B Case Study Help has certain strengths that can be used to minimize the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Viva Macau B Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position allows the company to consider a number of development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase constraints for the business in executing its development program. The weaknesses of Viva Macau B Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Viva Macau B Case Study Analysis as well, but the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company could also 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 expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented specific dangers to Viva Macau B Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Viva Macau B Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total earnings of Viva Macau B Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in attracting a large number of customers at a potential price.
Together with it, the second graph which reveals the yearly development in the Viva Macau B Case Study Analysis overall possessions, shows that the business is rather efficient in adding value to its possessions through its profits. The development in assets shows that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the distribution of total revenues of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP company 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 Viva Macau B Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the overall business at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus 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. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Viva Macau B Case Study Solution includes 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 disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Viva Macau B Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Viva Macau B Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in different market sections, with a significant focus on academic publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Viva Macau B Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact 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: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant option to avoid the declining market development. The company could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first gathers the information associated with the consumer demand, the possible markets, the federal government policies and the information connected to the rivals presented in the market. After that, the business needs to decide one prospective segment for its preliminary offering. It should gather research study that how it could separate its digital publishing from the existing rivals' items. After all the actions above the company should go for the preliminary offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
