We Have A Terrible Tragedy Here F 2 Case Study Solution and Analysis
Intro
We Have A Terrible Tragedy Here F 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing information and interaction services. Major company sectors of the business include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. We Have A Terrible Tragedy Here F 2 Case Study Solution has ended up being a specialized info company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and We Have A Terrible Tragedy Here F 2 Case Study Help in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change 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 business could be utilized 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
We Have A Terrible Tragedy Here F 2 Case Study Help has particular strengths that can be utilized to reduce the threats, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of We Have A Terrible Tragedy Here F 2 Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong monetary position allows the business to think about a number of development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the company in executing its development program. The weak points of We Have A Terrible Tragedy Here F 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, impacting We Have A Terrible Tragedy Here F 2 Case Study Solution too, however the development might be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned particular dangers to We Have A Terrible Tragedy Here F 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of We Have A Terrible Tragedy Here F 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry along with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP might not be computed. However, the total financial efficiency of the business could be evaluated by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of We Have A Terrible Tragedy Here F 2 Case Study Analysis is growing and the business is quite efficient in attracting a large number of customers at a possible cost.
In addition to it, the 2nd graph which reveals the annual development in the We Have A Terrible Tragedy Here F 2 Case Study Help overall properties, reveals that the business is quite effective in including worth to its possessions through its profits. The development in assets reveals that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis relating to the circulation of total revenues of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting We Have A Terrible Tragedy Here F 2 Case Study Solution business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the We Have A Terrible Tragedy Here F 2 Case Study Solution. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting We Have A Terrible Tragedy Here F 2 Case Study Help includes the concerns 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 utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding 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.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the We Have A Terrible Tragedy Here F 2 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the largest 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 industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of We Have A Terrible Tragedy Here F 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sections, with a significant focus on instructional publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of We Have A Terrible Tragedy Here F 2 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage 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 using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
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.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market growth. Intro of digital publishing could prove to be an instant service with low amount of threat for the business. However, the company could also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information related to the consumer demand, the prospective markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
