Westmount Retirement Residence 2 Case Study Solution and Analysis
Introduction
Westmount Retirement Residence 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing information and interaction services. Major organisation sections of the business consist of; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports etc. Westmount Retirement Residence 2 Case Study Solution has ended up being a specialized details provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Westmount Retirement Residence 2 Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of questions 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 business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Westmount Retirement Residence 2 Case Study Help has particular strengths that can be used to reduce the risks, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Westmount Retirement Residence 2 Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position permits the company to consider a number of development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the business in executing its advancement program. The weak points of Westmount Retirement Residence 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, affecting Westmount Retirement Residence 2 Case Study Analysis as well, however the development could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has posed specific threats to Westmount Retirement Residence 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Westmount Retirement Residence 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry in addition to presence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. Nevertheless, the overall financial performance of the company might be analyzed by using the charts given in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Westmount Retirement Residence 2 Case Study Help is growing and the business is rather efficient in drawing in a large number of consumers at a potential cost.
Together with it, the second graph which reveals the yearly growth in the Westmount Retirement Residence 2 Case Study Analysis overall properties, reveals that the business is rather efficient in adding value to its possessions through its incomes. The growth in assets shows that the overall value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis concerning the distribution of overall revenues of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Westmount Retirement Residence 2 Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the total business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Westmount Retirement Residence 2 Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the virtual libraries on particular websites. The changing customer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition 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 participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Westmount Retirement Residence 2 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Westmount Retirement Residence 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Westmount Retirement Residence 2 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant option to prevent the declining industry development. The business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must initially gathers the information connected to the customer demand, the prospective markets, the federal government policies and the information associated with the competitors provided in the market. After that, the business must choose one potential sector for its preliminary offering. It should collect research that how it might separate its digital publishing from the existing rivals' items. After all the steps above the business should choose the initial offering. The company ought to go for the other markets if the preliminary offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a hazard to the company's long term presence, but the scenario can be managed by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
