Westmont Retirement Case Study Solution and Analysis
Westmont Retirement Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and Westmont Retirement Case Study Analysis in particular. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions 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 company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Westmont Retirement Case Study Analysis has certain strengths that can be made use of to reduce the hazards, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Westmont Retirement 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 previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong monetary position enables the business to consider several development opportunities without any worry of raising fund externally.
Together with the strengths, the business has specific weaknesses which might increase constraints for the business in executing its development program. The weaknesses of Westmont Retirement Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing industry is decreasing given that 2008, affecting Westmont Retirement Case Study Analysis as well, however the growth could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has actually presented certain hazards to Westmont Retirement Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Westmont Retirement Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the danger of losing the client base.
The business has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be determined. The general monetary performance of the company could be examined by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Westmont Retirement Case Study Help is growing and the business is rather efficient in attracting a large number of customers at a possible price.
In addition to it, the 2nd graph which shows the annual development in the Westmont Retirement Case Study Solution overall properties, reveals that the company is rather effective in including value to its properties through its revenues. The development in assets shows that the overall worth of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the distribution of total earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective development to accomplish its future development goal.
PESTEL analysis might be performed to find out the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Westmont Retirement Case Study Help company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Westmont Retirement Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology together with the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Westmont Retirement Case Study Solution includes the issues of ecological communities over the use 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 hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
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. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Westmont Retirement Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 purchasers needs high quality files at competitive rates.
CMP runs in an extremely competitive market with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Westmont Retirement Case Study Help 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 exact same duration, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and second in different market segments, with a major concentrate on instructional publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Westmont Retirement Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Westmont Retirement Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an instant option to prevent the decreasing market growth. Intro of digital publishing could show to be an immediate service with low amount of threat for the business. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially gathers the information connected to the customer need, the prospective markets, the government regulations and the data connected to the competitors provided in the market. After that, the company ought to choose one potential segment for its preliminary offering. It should collect research that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the company must opt for the initial offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the business would have the ability to implement its digital publishing program.
The development of the publishing industry is declining because 2008, showing a danger to the company's long term presence, but the scenario can be managed by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.