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Western Governors University Case Solution

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Western Governors University Case Study Solution and Analysis


Intro

Western Governors University Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Crucial Issues

CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Western Governors University Case Study Help in specific. These factors include;

• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
Executive Summary
The improvement 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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


Western Governors University Case Study Help has specific strengths that can be made use of to minimize the threats, overcome the weak point and avail the chances. Strengths of CMP are given as follows;

• The long term experience of Western Governors University Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position allows the company to think about numerous development chances without any fear of raising fund externally.

Weak points

In addition to the strengths, the business has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Western Governors University Case Study Help are provided as follows;

• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is decreasing since 2008, affecting Western Governors University Case Study Help too, but the development might be restored by availing certain opportunities provided in the market. The market chances for CMP consist of;

• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.

Threats

The altering macro trends in the market and increasing competition in the publishing industry has posed certain threats to Western Governors University Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Western Governors University Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market together with presence of high competition increases the danger of losing the customer base.

Financial Analysis.
Swot Analysis
The business has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. However, the overall financial efficiency of the company could be analyzed by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Western Governors University Case Study Analysis is growing and the company is quite efficient in drawing in a large number of consumers at a potential price.

In addition to it, the 2nd chart which shows the yearly growth in the Western Governors University Case Study Solution overall possessions, reveals that the business is quite efficient in adding worth to its possessions through its profits. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).

Another monetary analysis of the business utilizing the offered information could be the analysis concerning the distribution of overall profits of the business. Huge 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 could move towards other organisation sections with a potential development to attain its future advancement objective.

PESTEL Analysis

PESTEL analysis could be carried out to find out the different external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Western Governors University Case Study Help service are high. The government policies concerning the publishing sector are also increasing with the passage of time.

Affordable.

Economic forces impacting the publishing sector in basic and the Western Governors University Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the total service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.

Social and Demographical.

The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.

Technological.

Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might decrease the need for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Western Governors University Case Study Help includes the concerns of environmental communities over the usage 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 should not be harmful for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.

Market Analysis (Porter's 5 Forces Model).

Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.

Hazard of New Entrants.

Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.

Risk of Alternative.

Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the threat of replacement for the industry.

Competitive Competition.

Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.

Bargaining Power of Provider.

The significant providers of the Western Governors University Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.

Competitors Analysis.

CMP operates in a highly 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 Western Governors University Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a hazard 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 market share of CMP easily in the current market situation.

Posts and telecommunication Press (PTP).

It was likewise established in the exact same period as Western Governors University Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.

Suggestions

With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant service to avoid the decreasing market development. Intro of digital publishing might prove to be an immediate service with low amount of risk for the business. However, the business could likewise consider the expansion program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its item portfolio, the business ought to first gathers the data associated with the customer demand, the prospective markets, the federal government regulations and the information connected to the rivals presented in the market. After that, the business should decide one potential section for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business need to go for the preliminary offering. The business needs to go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.

Conclusion

Although, the growth of the publishing industry is declining because 2008, showing a threat to the company's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.

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