Wc Wood Company B Case Study Solution and Analysis
Intro
Wc Wood Company B Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and Wc Wood Company B Case Study Analysis in specific. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Wc Wood Company B Case Study Analysis has specific strengths that can be used to decrease the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Wc Wood Company B Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position enables the company to consider a number of development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase restraints for the business in implementing its advancement program. The weak points of Wc Wood Company B Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard 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 certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Wc Wood Company B Case Study Solution as well, however the growth might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has posed particular dangers to Wc Wood Company B Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Wc Wood Company B Case Study Help due to the consumer shift towards virtual 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 acquire a strong customer base by using certain strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly total incomes of Wc Wood Company B Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential price.
Together with it, the second graph which reveals the annual development in the Wc Wood Company B Case Study Help total properties, reveals that the business is rather effective in adding value to its possessions through its revenues. The development in properties reveals that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the circulation of overall earnings of the business. Huge part of the profits 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 service sections with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces impacting Wc Wood Company B Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Wc Wood Company B Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Wc Wood Company B Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might 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 growth in the market tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Wc Wood Company B Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence 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. Significant rivals of Wc Wood Company B Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant solution to prevent the declining industry development. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must first collects the data associated with the consumer need, the prospective markets, the government regulations and the information related to the competitors provided in the market. After that, the business ought to choose one prospective sector for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' products. The steps above the business ought to go for the initial offering. The business ought to go for the other markets if the initial offering shows a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a danger to the business's long term existence, but the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
