West Line A 2 Case Study Solution and Analysis
Introduction
West Line A 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and West Line A 2 Case Study Help in specific. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions 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 abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
West Line A 2 Case Study Help has specific strengths that can be utilized to reduce the threats, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of West Line A 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced 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 consumers.
• Strong monetary position enables the business to consider several development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase constraints for the business in executing its development program. The weaknesses of West Line A 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting West Line A 2 Case Study Solution also, but the development might be restored by availing particular chances provided in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has presented particular dangers to West Line A 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of West Line A 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total revenues of West Line A 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite efficient in drawing in a big number of customers at a possible cost.
In addition to it, the second chart which reveals the yearly development in the West Line A 2 Case Study Solution total assets, reveals that the company is quite effective in adding worth to its possessions through its revenues. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis relating to the distribution of total profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the West Line A 2 Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books impact the overall organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out useful materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the West Line A 2 Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting West Line A 2 Case Study Help consists of the concerns of environmental neighborhoods over the use 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 must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-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.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on 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 significant suppliers of the West Line A 2 Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of West Line A 2 Case Study Solution include;.
• 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as West Line A 2 Case Study Help and CIP. It is also one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the declining market growth. Introduction of digital publishing might show to be an immediate option with low amount of threat for the company. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must initially collects the data connected to the consumer need, the prospective markets, the government regulations and the information connected to the rivals provided in the market. After that, the company needs to choose one prospective segment for its initial offering. It ought to gather research study that how it could separate its digital publishing from the existing rivals' products. The steps above the company need to go for the preliminary offering. If the preliminary offering proves a success, the company must opt for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, showing a risk to the business's long term presence, however the situation can be managed by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
