What Happened To The Dream 2 Case Study Solution and Analysis
Introduction
What Happened To The Dream 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, What Happened To The Dream 2 Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
What Happened To The Dream 2 Case Study Help has specific strengths that can be utilized to lower the risks, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of What Happened To The Dream 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase restrictions for the company in executing its development program. The weak points of What Happened To The Dream 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting What Happened To The Dream 2 Case Study Help as well, however the development might be revived by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has posed specific dangers to What Happened To The Dream 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of What Happened To The Dream 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. The general financial efficiency of the company might be analyzed by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of What Happened To The Dream 2 Case Study Solution is growing and the business is quite efficient in bring in a large number of clients at a possible rate.
In addition to it, the second graph which reveals the yearly development in the What Happened To The Dream 2 Case Study Solution total properties, shows that the business is rather effective in adding worth to its possessions through its revenues. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the distribution of total earnings of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting What Happened To The Dream 2 Case Study Analysis company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the What Happened To The Dream 2 Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the general business at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful materials and so on. China has the highest population on the planet with a high population growth, revealing the increasing number 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 traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting What Happened To The Dream 2 Case Study Analysis includes the concerns of environmental neighborhoods 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 must not be hazardous for the environment.
Legal.
Legal policies 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.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry 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 competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the What Happened To The Dream 2 Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of What Happened To The Dream 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a major concentrate on educational publications. CIP acts as a risk 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 What Happened To The Dream 2 Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as What Happened To The Dream 2 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant solution to prevent the declining market development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must initially collects the information related to the customer need, the prospective markets, the government guidelines and the information related to the competitors provided in the market. After that, the business needs to choose one prospective segment for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing competitors' items. After all the actions above the business should go for the preliminary offering. If the initial offering shows a success, the business should go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a risk to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
