White Paper 2 Case Study Solution and Analysis
Intro
White Paper 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing information and communication services. Significant company sectors of the company consist of; books, regulars, consultancy and distribution. The company has a large item portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports etc. White Paper 2 Case Study Analysis has become a specialized details supplier and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, White Paper 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 specific challenges to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 capabilities of the company could be used 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
White Paper 2 Case Study Help has particular strengths that can be used to reduce the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of White Paper 2 Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position permits the company to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase restraints for the business in implementing its development program. The weaknesses of White Paper 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting White Paper 2 Case Study Help as well, but the development could be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has postured specific dangers to White Paper 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of White Paper 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total incomes of White Paper 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather effective in attracting a large number of clients at a possible price.
Together with it, the 2nd chart which reveals the annual growth in the White Paper 2 Case Study Help total assets, reveals that the company is rather effective in adding value to its properties through its revenues. The growth in assets reveals that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the distribution of overall profits of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting White Paper 2 Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence 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 competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the White Paper 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of White Paper 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it could 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 scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market growth. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially collects the information associated with the customer need, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the company should decide one potential segment for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing competitors' products. The actions above the company should go for the preliminary offering. If the preliminary offering proves a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a danger to the business's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
