Workbrain Corp 2 Case Study Solution and Analysis
Workbrain Corp 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Workbrain Corp 2 Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 situation? Do the long important 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?
Workbrain Corp 2 Case Study Analysis has specific strengths that can be used to reduce the hazards, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Workbrain Corp 2 Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the business to consider numerous development chances without any worry of raising fund externally.
In addition to the strengths, the company has specific weak points which could increase constraints for the business in implementing its advancement program. The weaknesses of Workbrain Corp 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is declining since 2008, affecting Workbrain Corp 2 Case Study Analysis also, but the growth could be restored by availing certain chances presented in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The changing macro trends in the market and increasing competitors in the publishing market has presented certain hazards to Workbrain Corp 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Workbrain Corp 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competition increases the hazard of losing the consumer base.
Due to absence of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual overall earnings of Workbrain Corp 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is quite effective in bring in a large number of clients at a prospective rate.
Along with it, the 2nd graph which reveals the annual growth in the Workbrain Corp 2 Case Study Analysis total assets, shows that the business is quite effective in adding worth to its possessions through its revenues. The development in possessions reveals that the total worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business using the given information could be the analysis relating to the circulation of overall incomes of the business. Major 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 business might move towards other company sections with a potential development to attain its future advancement objective.
PESTEL analysis might be conducted to learn the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the frame of mind of the people 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 affecting Workbrain Corp 2 Case Study Help service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Workbrain Corp 2 Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the total business at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading useful products etc. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the Workbrain Corp 2 Case Study Help. However, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Workbrain Corp 2 Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files provided in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the risk of substitution for the market.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Workbrain Corp 2 Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Workbrain Corp 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable type 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 significant focus on educational publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Workbrain Corp 2 Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the business require an instant service to prevent the declining market growth. The business might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first gathers the information related to the customer demand, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing market is declining considering that 2008, revealing a danger to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.