We Have A Terrible Tragedy Here C 2 Case Study Solution and Analysis
Introduction
We Have A Terrible Tragedy Here C 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing info and communication services. Significant organisation segments of the business include; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products include books, regulars, online media, exhibits, research study reports etc. We Have A Terrible Tragedy Here C 2 Case Study Help has become a specialized details company and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, We Have A Terrible Tragedy Here C 2 Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities 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
We Have A Terrible Tragedy Here C 2 Case Study Analysis has certain strengths that can be utilized to lower the hazards, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of We Have A Terrible Tragedy Here C 2 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its clients.
• Strong monetary position allows the business to consider a number of development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which could increase restrictions for the company in executing its development program. The weaknesses of We Have A Terrible Tragedy Here C 2 Case Study Analysis are given 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 extremely relies over the Chinese markets for its development. It should propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting We Have A Terrible Tragedy Here C 2 Case Study Help as well, however the development could be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned particular risks to We Have A Terrible Tragedy Here C 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of We Have A Terrible Tragedy Here C 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall earnings of We Have A Terrible Tragedy Here C 2 Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in bring in a big number of customers at a prospective cost.
Along with it, the 2nd chart which shows the yearly growth in the We Have A Terrible Tragedy Here C 2 Case Study Analysis overall assets, reveals that the company is quite efficient in adding value to its possessions through its revenues. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data might be the analysis concerning the circulation of overall earnings of the business. Huge 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 business sectors with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the We Have A Terrible Tragedy Here C 2 Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books affect the overall business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading helpful products etc. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the We Have A Terrible Tragedy Here C 2 Case Study Solution. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting We Have A Terrible Tragedy Here C 2 Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used 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 regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially 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.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the We Have A Terrible Tragedy Here C 2 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of We Have A Terrible Tragedy Here C 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sections, with a major concentrate on educational publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of We Have A Terrible Tragedy Here C 2 Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as We Have A Terrible Tragedy Here C 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an instant solution to prevent the declining market growth. For that reason, intro of digital publishing could show to be an instant option with low amount of risk for the company. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must first collects the information related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing 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 consider presenting 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.
