Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution and Analysis
Introduction
Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing info and communication services. Significant company sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its major items include books, periodicals, online media, exhibits, research study reports and so on. Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Help has actually become a specialized information service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns 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 company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Help has certain strengths that can be used to lower the threats, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong monetary position allows the company to consider several development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the business in executing its development program. The weaknesses of Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable 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 accomplish long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Analysis too, however the development could be restored by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured particular hazards to Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competition increases the threat of losing the client base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. The overall financial performance of the business could be analyzed by using the charts offered in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Help is growing and the company is rather effective in drawing in a large number of clients at a prospective rate.
Along with it, the 2nd chart which reveals the yearly growth in the Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Help overall properties, reveals that the company is quite efficient in adding value to its possessions through its profits. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the distribution of overall earnings of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading helpful products and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of consumers of the Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the documents presented in the digital libraries on specific websites. The altering consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in numerous market segments, with a major focus on educational publications. CIP serves as a risk 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 marketplace share of Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Whats New About New Media How Multi Channel Networks Work With Content Creators Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an instant option to prevent the declining market growth. For that reason, intro of digital publishing could prove to be an immediate service with low quantity of danger for the company. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the data related to the customer need, the prospective markets, the federal government policies and the information related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a risk to the business's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
