Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Solution and Analysis
Introduction
Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing info and interaction services. Significant company sectors of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major items consist of books, periodicals, online media, exhibits, research reports and so on. Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help has ended up being a specialized details service provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the 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 change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Solution has specific strengths that can be utilized to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products 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 item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position allows the company to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restrictions for the business in implementing its advancement program. The weak points of Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help also, however the development could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has posed particular dangers to Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall profits of Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Analysis 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 company is rather efficient in attracting a large number of consumers at a prospective rate.
Along with it, the second graph which shows the annual development in the Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Solution total properties, reveals that the company is rather effective in including value to its assets through its revenues. The development in assets shows that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis relating to the distribution of total incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the total company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs 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 Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the virtual libraries on certain websites. The altering consumer choices towards digital knowing increase the threat of alternative for the market.
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 etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in different market segments, with a significant focus on instructional publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Were All Connected The Power Of The Social Media Ecosystem 2 Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth 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 business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an immediate option to prevent the decreasing industry growth. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially gathers the information related to the consumer demand, the prospective markets, the government regulations and the data related to the competitors provided in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term presence, however the situation can be managed by considering an advancement plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
