Week 5 Final Paper Case Study Solution and Analysis
Introduction
Week 5 Final Paper Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and Week 5 Final Paper Case Study Help in particular. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 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
Week 5 Final Paper Case Study Solution has certain strengths that can be made use of to decrease the threats, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Week 5 Final Paper Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong financial position enables the business to consider several development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which could increase constraints for the company in implementing its development program. The weak points of Week 5 Final Paper Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Week 5 Final Paper Case Study Help too, however the development could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned certain hazards to Week 5 Final Paper Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Week 5 Final Paper Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry together with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. The overall monetary efficiency of the business could be examined by using the charts offered in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Week 5 Final Paper Case Study Help is growing and the company is quite efficient in drawing in a a great deal of consumers at a potential rate.
Together with it, the 2nd chart which reveals the yearly development in the Week 5 Final Paper Case Study Help overall assets, reveals that the company is quite efficient in adding worth to its assets through its profits. The development in assets shows that the overall worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the circulation 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 might move towards other company segments with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Week 5 Final Paper Case Study Solution. However, the customer choices are shifting towards digital publishing instead of the traditional 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 strategies etc. Enhancement of science and technology along with the increase of digital publishing might lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Week 5 Final Paper Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Week 5 Final Paper Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Week 5 Final Paper Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a significant focus on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Week 5 Final Paper Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Week 5 Final Paper Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger 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 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 concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the decreasing market growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should initially collects the data related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a threat to the business's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
