Water Shortage And Property Investing In Mexico City Spanish Version Case Study Solution and Analysis
Introduction
Water Shortage And Property Investing In Mexico City Spanish Version Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing info and communication services. Major business segments of the company include; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Water Shortage And Property Investing In Mexico City Spanish Version Case Study Analysis has ended up being a specialized details provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Water Shortage And Property Investing In Mexico City Spanish Version Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement 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 situation? Do the long important experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Water Shortage And Property Investing In Mexico City Spanish Version Case Study Solution has particular strengths that can be utilized to reduce the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Water Shortage And Property Investing In Mexico City Spanish Version Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position allows the business to consider several development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Water Shortage And Property Investing In Mexico City Spanish Version Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, 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 particular growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Water Shortage And Property Investing In Mexico City Spanish Version Case Study Help as well, however the growth could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has positioned particular risks to Water Shortage And Property Investing In Mexico City Spanish Version Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Water Shortage And Property Investing In Mexico City Spanish Version Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total revenues of Water Shortage And Property Investing In Mexico City Spanish Version Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in drawing in a big number of consumers at a possible cost.
Together with it, the 2nd chart which reveals the annual development in the Water Shortage And Property Investing In Mexico City Spanish Version Case Study Solution overall assets, shows that the business is quite efficient in including worth to its possessions through its revenues. The growth in assets shows that the total value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis regarding the distribution of total revenues of the business. Huge part of the revenues 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 company sectors with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces impacting the performance of the company and the recent patterns 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 significant effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology along with the rise of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Water Shortage And Property Investing In Mexico City Spanish Version Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the virtual libraries on particular websites. The altering consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Water Shortage And Property Investing In Mexico City Spanish Version Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Water Shortage And Property Investing In Mexico City Spanish Version Case Study Solution include;.
• Chemical Industry 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 existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the 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 players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an instant option to avoid the declining market development. Intro of digital publishing could prove to be an instant option with low quantity of danger for the business. The business might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially collects the data connected to the customer demand, the potential markets, the federal government policies and the information related to the rivals presented in the market. After that, the business needs to decide one potential sector for its preliminary offering. It should gather research that how it might separate its digital publishing from the existing rivals' items. The steps above the business ought to go for the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a risk to the company's long term presence, but the circumstance can be controlled by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
