Water Treatment Facility Case Study Solution and Analysis
Introduction
Water Treatment Facility Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Water Treatment Facility Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 important experience, technical resources and the capabilities of the company could be made use of 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
Water Treatment Facility Case Study Solution has certain strengths that can be utilized to decrease the risks, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Water Treatment Facility Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position allows the company to consider a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Water Treatment Facility Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Water Treatment Facility Case Study Solution as well, but the development could be revived by availing specific chances provided in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured specific risks to Water Treatment Facility Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Water Treatment Facility Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the total financial performance of the company might be examined by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Water Treatment Facility Case Study Analysis is growing and the company is quite effective in attracting a a great deal of customers at a possible price.
Together with it, the 2nd graph which reveals the yearly growth in the Water Treatment Facility Case Study Help overall properties, shows that the business is quite effective in including worth to its assets through its incomes. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the given data could be the analysis relating to the distribution of total earnings of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Water Treatment Facility Case Study Help in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies related to the import of books impact the total company at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative products etc. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Water Treatment Facility Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Water Treatment Facility Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry 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 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 major suppliers of the Water Treatment Facility Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Water Treatment Facility 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 could wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Water Treatment Facility Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 service sectors to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an instant option to prevent the decreasing market development. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first collects the data related to the consumer demand, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a threat to the business's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
