Workwell B 2 Case Study Solution and Analysis
Intro
Workwell B 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Workwell B 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in general and CMP in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 scenario? Do the long important experience, technical resources and the abilities of the company could be utilized 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
Workwell B 2 Case Study Help has particular strengths that can be utilized to decrease the risks, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Workwell B 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong financial position allows the company to consider numerous development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weak points of Workwell B 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing because 2008, impacting Workwell B 2 Case Study Analysis as well, but the growth might be revived by availing specific chances provided 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 client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has posed specific risks to Workwell B 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Workwell B 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly overall profits of Workwell B 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in attracting a large number of customers at a prospective cost.
Along with it, the second graph which reveals the yearly growth in the Workwell B 2 Case Study Help overall properties, reveals that the company is rather effective in adding worth to its properties through its profits. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis concerning the distribution of overall profits of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Workwell B 2 Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the total organisation at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Workwell B 2 Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents provided in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Workwell B 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Workwell B 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a significant focus on instructional publications. CIP serves as a threat 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 Workwell B 2 Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Workwell B 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing market growth. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must initially collects the data related to the consumer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a hazard to the business's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
