What Happened To The Dream 2 Case Study Solution and Analysis
What Happened To The Dream 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, What Happened To The Dream 2 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
What Happened To The Dream 2 Case Study Analysis has particular strengths that can be used to lower the dangers, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of What Happened To The Dream 2 Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position allows the business to consider several development chances with no worry of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase restrictions for the company in implementing its development program. The weak points of What Happened To The Dream 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Although, the development of the publishing market is decreasing given that 2008, impacting What Happened To The Dream 2 Case Study Analysis also, however the development could be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned certain hazards to What Happened To The Dream 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of What Happened To The Dream 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the threat of losing the customer base.
Due to absence of data, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly total revenues of What Happened To The Dream 2 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a big number of consumers at a possible rate.
Together with it, the 2nd graph which reveals the yearly growth in the What Happened To The Dream 2 Case Study Solution total properties, shows that the business is quite effective in including value to its properties through its revenues. The growth in properties shows that the overall value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the distribution of overall revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a potential growth to attain its future development objective.
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful materials etc. China has the highest population in the world with a high population development, showing the increasing variety of customers of the What Happened To The Dream 2 Case Study Analysis. However, the customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting What Happened To The Dream 2 Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized 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 might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the danger of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the What Happened To The Dream 2 Case Study Analysis consist of 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 provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of What Happened To The Dream 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business need an instant service to avoid the decreasing industry development. The company might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first collects the data related to the consumer need, the possible markets, the government regulations and the data associated with the rivals presented in the market. After that, the business should decide one potential sector for its initial offering. It needs to gather research study that how it might separate its digital publishing from the existing rivals' products. After all the actions above the business should go for the initial offering. The company should go for the other markets if the preliminary offering proves a success. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing considering that 2008, showing a danger to the company's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.