Xylem Lets Solve Water Case Study Solution and Analysis
Intro
Xylem Lets Solve Water Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and Xylem Lets Solve Water Case Study Solution in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? 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
Xylem Lets Solve Water Case Study Help has specific strengths that can be utilized to minimize the threats, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Xylem Lets Solve Water Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong monetary position enables the company to consider several development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Xylem Lets Solve Water Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, 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 needs to propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Xylem Lets Solve Water Case Study Analysis as well, however the growth could be restored by availing particular chances provided in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has posed certain hazards to Xylem Lets Solve Water Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Xylem Lets Solve Water Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market in addition to presence of high competition increases the threat of losing the client base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be determined. Nevertheless, the general financial performance of the business could be analyzed by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Xylem Lets Solve Water Case Study Solution is growing and the company is rather efficient in bring in a a great deal of customers at a potential price.
Along with it, the second chart which shows the annual development in the Xylem Lets Solve Water Case Study Help overall possessions, shows that the business is quite effective in including value to its properties through its revenues. The development in possessions shows that the overall value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis relating to the distribution of total revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the company 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 state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Xylem Lets Solve Water Case Study Help organisation 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 general and the Xylem Lets Solve Water Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the total company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out informative products and so on. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the Xylem Lets Solve Water Case Study Solution. However, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Xylem Lets Solve Water Case Study Help consists of the concerns of environmental communities over the use 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 hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition 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 Xylem Lets Solve Water Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Xylem Lets Solve Water Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Xylem Lets Solve Water Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an instant service to avoid the decreasing market growth. Intro of digital publishing might prove to be an immediate option with low quantity of danger for the company. However, the company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the consumer demand, the prospective markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
