Washington Mutual B From Forty Six To Sixteen 2 Case Study Solution and Analysis
Intro
Washington Mutual B From Forty Six To Sixteen 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Washington Mutual B From Forty Six To Sixteen 2 Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement 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 valuable experience, technical resources and the capabilities of the business could be used 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
Washington Mutual B From Forty Six To Sixteen 2 Case Study Solution has particular strengths that can be made use of to decrease the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Washington Mutual B From Forty Six To Sixteen 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong monetary position enables the company to consider a number of development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Washington Mutual B From Forty Six To Sixteen 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting Washington Mutual B From Forty Six To Sixteen 2 Case Study Analysis as well, but the growth might be restored by availing certain chances presented in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has positioned particular threats to Washington Mutual B From Forty Six To Sixteen 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Washington Mutual B From Forty Six To Sixteen 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual overall incomes of Washington Mutual B From Forty Six To Sixteen 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather effective in bring in a big number of consumers at a potential rate.
In addition to it, the 2nd graph which shows the yearly development in the Washington Mutual B From Forty Six To Sixteen 2 Case Study Analysis overall assets, shows that the company is rather effective in adding value to its properties through its earnings. The development in assets reveals that the overall value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis regarding the distribution of total revenues of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of the people 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. Therefore, it might be stated that the total political forces impacting Washington Mutual B From Forty Six To Sixteen 2 Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Washington Mutual B From Forty Six To Sixteen 2 Case Study Help includes the concerns of ecological 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 utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Washington Mutual B From Forty Six To Sixteen 2 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Washington Mutual B From Forty Six To Sixteen 2 Case Study Solution consist of;.
• 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 quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate 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.
Suggestions
As the choices are moving towards digital publishing and the company require an instant service to avoid the decreasing market growth. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially collects the information related to the consumer need, the prospective markets, the government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business needs 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 industry is declining because 2008, revealing a threat to the company's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
