Water Markets From An Economic Point Of View Case Study Solution and Analysis
Intro
Water Markets From An Economic Point Of View Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing info and communication services. Significant company sectors of the business consist of; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Water Markets From An Economic Point Of View Case Study Analysis has actually become a specialized information provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Water Markets From An Economic Point Of View Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation 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 utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Water Markets From An Economic Point Of View Case Study Analysis has certain strengths that can be made use of to reduce the hazards, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Water Markets From An Economic Point Of View Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position permits the company to consider several development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase restraints for the company in implementing its development program. The weak points of Water Markets From An Economic Point Of View Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting Water Markets From An Economic Point Of View Case Study Solution as well, however the development could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has postured particular dangers to Water Markets From An Economic Point Of View Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Water Markets From An Economic Point Of View Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be computed. Nevertheless, the total financial performance of the company might be evaluated by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Water Markets From An Economic Point Of View Case Study Help is growing and the company is rather effective in attracting a large number of consumers at a possible cost.
In addition to it, the 2nd chart which shows the yearly growth in the Water Markets From An Economic Point Of View Case Study Analysis total properties, reveals that the company is rather effective in adding value to its possessions through its earnings. The growth in possessions shows that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis regarding the circulation of total profits of the company. Major part of the incomes 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 segments with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the total political forces affecting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Water Markets From An Economic Point Of View Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Water Markets From An Economic Point Of View Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Water Markets From An Economic Point Of View Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks third and second in numerous market segments, with a major concentrate on educational publications. CIP functions as a danger 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 Water Markets From An Economic Point Of View Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an instant solution to avoid the decreasing market growth. Therefore, intro of digital publishing might prove to be an instant service with low quantity of risk for the company. However, the business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first gathers the information related to the customer demand, the potential markets, the government guidelines and the information connected to the competitors presented in the market. After that, the company must decide one possible segment for its preliminary offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business ought to go for the preliminary offering. If the preliminary offering proves a success, the company must opt for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a risk to the company's long term existence, however the situation can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
