Wc Wood Company A Case Study Solution and Analysis
Wc Wood Company A Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing details and interaction services. Major company sectors of the company consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. Wc Wood Company A Case Study Help has become a specialized details service provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Wc Wood Company A Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing market in general and CMP in particular. These elements include;
• Entrance of the brand-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 change of the macro markets have raised several questions 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 abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Wc Wood Company A Case Study Analysis has specific strengths that can be utilized to decrease the risks, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Wc Wood Company A Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the company to consider numerous advancement chances with no fear of raising fund externally.
Together with the strengths, the company has specific weak points which might increase restrictions for the business in executing its advancement program. The weak points of Wc Wood Company A Case Study Help are offered 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 extremely relies over the Chinese markets for its development. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing considering that 2008, impacting Wc Wood Company A Case Study Help as well, however the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competitors in the publishing market has presented particular threats to Wc Wood Company A Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Wc Wood Company A Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the customer base.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be calculated. The general financial performance of the business could be analyzed by utilizing the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Wc Wood Company A Case Study Solution is growing and the company is rather efficient in drawing in a large number of clients at a prospective rate.
Together with it, the 2nd graph which shows the annual development in the Wc Wood Company A Case Study Analysis overall assets, reveals that the business is quite effective in adding worth to its properties through its revenues. The growth in possessions reveals that the total worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis relating to the distribution of total profits of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a prospective development to attain its future advancement objective.
PESTEL analysis could be conducted to find out the different external forces impacting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Wc Wood Company A Case Study Help business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces affecting Wc Wood Company A Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents presented in the digital libraries on certain sites. The altering customer choices towards digital learning increase the hazard of replacement for the market.
Competitive competition in the publishing market is high. The presence 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. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Wc Wood Company A Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
CMP operates in an extremely competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Wc Wood Company A Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks third and second in different market sections, with a major concentrate on instructional publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Wc Wood Company A Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Wc Wood Company A Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its items in the market.
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the decreasing industry development. The business could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must first collects the data associated with the customer demand, the potential markets, the federal government policies and the data related to the competitors provided in the market. After that, the business ought to choose one prospective sector for its initial offering. It must gather research study that how it might distinguish its digital publishing from the existing rivals' items. After all the steps above the company ought to opt for the preliminary offering. If the initial offering shows a success, the company needs to choose the other markets. In this way the business would have the ability to execute its digital publishing program.
Although, the growth of the publishing market is declining considering that 2008, showing a risk to the business's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.