What Kind Of Business Case Studies Are We Writing Case Study Solution and Analysis
What Kind Of Business Case Studies Are We Writing Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing information and communication services. Major company segments of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant items include books, periodicals, online media, exhibits, research reports and so on. What Kind Of Business Case Studies Are We Writing Case Study Help has actually become a specialized information service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, What Kind Of Business Case Studies Are We Writing Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
What Kind Of Business Case Studies Are We Writing Case Study Help has specific strengths that can be utilized to lower the threats, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of What Kind Of Business Case Studies Are We Writing Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the company to think about a number of advancement opportunities without any worry of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restrictions for the business in implementing its advancement program. The weak points of What Kind Of Business Case Studies Are We Writing Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Although, the development of the publishing market is decreasing given that 2008, impacting What Kind Of Business Case Studies Are We Writing Case Study Help too, but the growth might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has posed specific hazards to What Kind Of Business Case Studies Are We Writing Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of What Kind Of Business Case Studies Are We Writing Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the danger of losing the client base.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be determined. Nevertheless, the total monetary efficiency of the company might be examined by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of What Kind Of Business Case Studies Are We Writing Case Study Analysis is growing and the company is quite efficient in attracting a large number of consumers at a prospective rate.
In addition to it, the 2nd graph which reveals the annual development in the What Kind Of Business Case Studies Are We Writing Case Study Analysis total assets, reveals that the company is rather effective in adding worth to its possessions through its incomes. The growth in assets shows that the total value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the provided information could be the analysis regarding the circulation of overall revenues of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a potential development to attain its future advancement goal.
PESTEL analysis could be performed to discover the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces impacting What Kind Of Business Case Studies Are We Writing Case Study Analysis service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative products and so on. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the What Kind Of Business Case Studies Are We Writing Case Study Solution. However, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting What Kind Of Business Case Studies Are We Writing Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the What Kind Of Business Case Studies Are We Writing Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 buyers requires high quality files at competitive prices.
CMP runs in a highly competitive market with the presence 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. Major competitors of What Kind Of Business Case Studies Are We Writing Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in different market sections, with a major concentrate on educational publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of What Kind Of Business Case Studies Are We Writing Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as What Kind Of Business Case Studies Are We Writing Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing market growth. Introduction of digital publishing might show to be an immediate option with low amount of risk for the company. The company could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company should initially gathers the data associated with the customer demand, the possible 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 initial offering. It should gather research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the business must opt for the initial offering. If the preliminary offering shows a success, the company should opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
The development of the publishing industry is declining considering that 2008, showing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.