West Paw Designs Case Study Solution and Analysis
Introduction
West Paw Designs Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing info and communication services. Significant business sectors of the business consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports etc. West Paw Designs Case Study Help has ended up being a specialized information service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and West Paw Designs Case Study Analysis in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
West Paw Designs Case Study Analysis has particular strengths that can be made use of to minimize the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of West Paw Designs Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position permits the business to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of West Paw Designs Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company 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 specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining since 2008, affecting West Paw Designs Case Study Analysis as well, however the development could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has postured particular risks to West Paw Designs Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of West Paw Designs Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall incomes of West Paw Designs Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of consumers at a prospective rate.
Along with it, the 2nd chart which shows the yearly growth in the West Paw Designs Case Study Help total assets, shows that the business is rather effective in adding value to its assets through its profits. The development in properties reveals that the overall value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis relating to the distribution of total incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting West Paw Designs Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the West Paw Designs Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of West Paw Designs Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant focus on educational publications. CIP acts 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 market share of West Paw Designs Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as West Paw Designs Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall incomes 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 opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the decreasing industry growth. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first gathers the data related to the customer demand, the potential markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company must 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 since 2008, showing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
