West Ham United Football Clubs Olympic Stadium Move Case Study Solution and Analysis
West Ham United Football Clubs Olympic Stadium Move Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing details and communication services. Significant business sectors of the business consist of; books, regulars, consultancy and circulation. The business has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. West Ham United Football Clubs Olympic Stadium Move Case Study Solution has become a specialized info supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in general and West Ham United Football Clubs Olympic Stadium Move Case Study Solution in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
West Ham United Football Clubs Olympic Stadium Move Case Study Solution has particular strengths that can be used to lower the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of West Ham United Football Clubs Olympic Stadium Move Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong monetary position enables the business to think about several development chances with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase constraints for the company in implementing its development program. The weak points of West Ham United Football Clubs Olympic Stadium Move Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional 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 strategies to prevent its reliance over the Chinese markets to achieve long term development.
The growth of the publishing industry is declining since 2008, affecting West Ham United Football Clubs Olympic Stadium Move Case Study Analysis as well, however the growth could be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competition in the publishing market has postured particular dangers to West Ham United Football Clubs Olympic Stadium Move Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of West Ham United Football Clubs Olympic Stadium Move Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the danger of losing the customer base.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall earnings of West Ham United Football Clubs Olympic Stadium Move Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in drawing in a big number of clients at a possible rate.
In addition to it, the 2nd graph which shows the yearly growth in the West Ham United Football Clubs Olympic Stadium Move Case Study Help overall properties, shows that the business is rather efficient in adding value to its possessions through its earnings. The growth in possessions reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis relating to the distribution of overall incomes of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible growth to accomplish its future advancement objective.
PESTEL analysis could be conducted to learn the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading helpful materials etc. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the West Ham United Football Clubs Olympic Stadium Move Case Study Analysis. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting West Ham United Football Clubs Olympic Stadium Move Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used 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 regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers 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 market. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents presented in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry 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 competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the West Ham United Football Clubs Olympic Stadium Move Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of West Ham United Football Clubs Olympic Stadium Move Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a significant concentrate on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of West Ham United Football Clubs Olympic Stadium Move Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its products in the market.
As the preferences are moving towards digital publishing and the company need an immediate service to avoid the declining industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company ought to first collects the data connected to the consumer demand, the prospective markets, the government policies and the information related to the rivals presented in the market. After that, the company must choose one prospective sector for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing rivals' products. The actions above the company ought to go for the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining given that 2008, showing a threat to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.