W C Wood Company B Case Study Solution and Analysis
Introduction
W C Wood Company B Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing info and communication services. Significant business sections of the business consist of; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. W C Wood Company B Case Study Solution has ended up being a specialized details service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, W C Wood Company B Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
W C Wood Company B Case Study Analysis has specific strengths that can be used to lower the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of W C Wood Company B Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position allows the company to consider a number of development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of W C Wood Company B Case Study Help are given as follows;
• Despite of being a science and technology publishing company, 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 must propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining since 2008, impacting W C Wood Company B Case Study Solution as well, but the development might be restored by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned particular dangers to W C Wood Company B Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of W C Wood Company B Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the danger of losing the customer base.
Financial 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 W C Wood Company B Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is rather effective in bring in a large number of consumers at a prospective cost.
Along with it, the second chart which shows the yearly growth in the W C Wood Company B Case Study Solution overall possessions, shows that the company is quite efficient in including value to its properties through its revenues. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the distribution of total incomes of the company. Major part of the profits 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 service sectors with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out 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 provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the W C Wood Company B Case Study Solution 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 impact the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the overall business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative products etc. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the W C Wood Company B Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting W C Wood Company B Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files provided in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the W C Wood Company B Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of W C Wood Company B Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a major focus 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 concentrated on digital publishing and might wean the marketplace share of W C Wood Company B Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
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 brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant service to prevent the decreasing industry growth. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first gathers the data related to the consumer demand, the potential markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a threat to the company's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
