Xiameter 2 Case Study Solution and Analysis
Intro
Xiameter 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and Xiameter 2 Case Study Solution in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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
Xiameter 2 Case Study Help has certain strengths that can be made use of to lower the risks, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Xiameter 2 Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong monetary position allows the company to think about several development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restraints for the business in implementing its development program. The weaknesses of Xiameter 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Xiameter 2 Case Study Help as well, however the development might be restored by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured particular dangers to Xiameter 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Xiameter 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. Nevertheless, the overall financial performance of the business might be analyzed by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Xiameter 2 Case Study Analysis is growing and the business is rather effective in bring in a large number of consumers at a possible rate.
Along with it, the 2nd graph which shows the yearly growth in the Xiameter 2 Case Study Help overall possessions, shows that the business is rather effective in adding value to its assets through its profits. The development in possessions reveals that the total value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the circulation of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Xiameter 2 Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Xiameter 2 Case Study Solution in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books impact the total business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative products and so on. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Xiameter 2 Case Study Solution. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Xiameter 2 Case Study Help includes the concerns 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.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Xiameter 2 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Xiameter 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing market growth. Therefore, intro of digital publishing might prove to be an instant service with low quantity of risk for the company. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should first gathers the data related to the consumer need, the possible markets, the government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a hazard to the business's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
