Weddington Way Case Study Solution and Analysis
Introduction
Weddington Way Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Weddington Way Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing market in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 valuable experience, technical resources and the abilities of the business could be utilized 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
Weddington Way Case Study Analysis has certain strengths that can be made use of to lower the hazards, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Weddington Way Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position enables the company to consider numerous development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which could increase constraints for the company in executing its advancement program. The weak points of Weddington Way Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting Weddington Way Case Study Help as well, but the development could be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has posed particular risks to Weddington Way Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Weddington Way Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual overall profits of Weddington Way Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is quite effective in drawing in a large number of customers at a possible cost.
Along with it, the second graph which reveals the annual development in the Weddington Way Case Study Analysis overall possessions, reveals that the company is quite efficient in adding worth to its possessions through its revenues. The development in assets shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis regarding the distribution of overall revenues of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the company and the recent trends 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 effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces impacting Weddington Way Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Weddington Way Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations 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 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition 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 rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Weddington Way Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal 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 Weddington Way Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Weddington Way Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use 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 utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service sections to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry development. For that reason, introduction of digital publishing could show to be an instant solution with low amount of danger for the business. Nevertheless, the company could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the information related to the consumer demand, the potential markets, the government policies and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a risk to the business's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
