Water Crisis In India 2 Case Study Solution and Analysis
Introduction
Water Crisis In India 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing info and interaction services. Significant service sectors of the business consist of; books, regulars, consultancy and circulation. The business has a large item portfolio and its major items consist of books, regulars, online media, exhibits, research study reports and so on. Water Crisis In India 2 Case Study Solution has ended up being a specialized info supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Water Crisis In India 2 Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised a number of concerns 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 utilized 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
Water Crisis In India 2 Case Study Help has specific strengths that can be made use of to decrease the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Water Crisis In India 2 Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position permits the company to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of Water Crisis In India 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Water Crisis In India 2 Case Study Help as well, however the growth could be revived by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has postured specific threats to Water Crisis In India 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Water Crisis In India 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence 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 consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market along with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall earnings of Water Crisis In India 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in bring in a big number of consumers at a prospective cost.
In addition to it, the second chart which reveals the yearly growth in the Water Crisis In India 2 Case Study Analysis overall possessions, shows that the business is quite effective in including value to its assets through its earnings. The development in possessions shows that the total value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the distribution of total profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting Water Crisis In India 2 Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the Water Crisis In India 2 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Water Crisis In India 2 Case Study Solution includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in 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.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the documents presented in the virtual libraries on particular websites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Water Crisis In India 2 Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market 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 files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Water Crisis In India 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market growth. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must initially collects the data related to the customer need, the prospective markets, the government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a risk to the company's long term presence, however the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
