Washington Mutual B From Forty Six To Sixteen Case Study Solution and Analysis
Introduction
Washington Mutual B From Forty Six To Sixteen Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing details and communication services. Major organisation sections of the business consist of; books, regulars, consultancy and distribution. The company has a large product portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. Washington Mutual B From Forty Six To Sixteen Case Study Analysis has ended up being a specialized details company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and Washington Mutual B From Forty Six To Sixteen Case Study Analysis in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for 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 Case Study Analysis has particular strengths that can be made use of to lower the hazards, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Washington Mutual B From Forty Six To Sixteen Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong monetary position allows the business to think about numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restraints for the company in implementing its development program. The weaknesses of Washington Mutual B From Forty Six To Sixteen Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company 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 needs to propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting Washington Mutual B From Forty Six To Sixteen Case Study Analysis as well, but the growth could be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed particular hazards to Washington Mutual B From Forty Six To Sixteen Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Washington Mutual B From Forty Six To Sixteen Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry in addition to presence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual total revenues of Washington Mutual B From Forty Six To Sixteen Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in attracting a large number of customers at a potential rate.
Together with it, the 2nd graph which shows the yearly growth in the Washington Mutual B From Forty Six To Sixteen Case Study Solution overall possessions, reveals that the company is rather effective in adding value to its properties through its profits. The development in properties reveals that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the distribution of total profits of the business. 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 could move towards other service sectors with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces impacting Washington Mutual B From Forty Six To Sixteen Case Study Help service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Washington Mutual B From Forty Six To Sixteen Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the overall service at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Washington Mutual B From Forty Six To Sixteen Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the documents presented in the virtual libraries on particular sites. The altering customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Washington Mutual B From Forty Six To Sixteen Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Washington Mutual B From Forty Six To Sixteen Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 could wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need 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 advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an immediate option to prevent the declining market development. Introduction of digital publishing might prove to be an instant solution with low quantity of danger for the company. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information related to the customer need, the potential markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a danger to the business's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
