Xylem Lets Solve Water Case Study Solution and Analysis
Intro
Xylem Lets Solve Water Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Xylem Lets Solve Water Case Study Help in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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 capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Xylem Lets Solve Water Case Study Solution has specific strengths that can be made use of to minimize the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Xylem Lets Solve Water Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong monetary position enables the company to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of Xylem Lets Solve Water Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Xylem Lets Solve Water Case Study Analysis too, but the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has presented specific hazards to Xylem Lets Solve Water Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Xylem Lets Solve Water Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be determined. The overall financial performance of the business might be examined by utilizing the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Xylem Lets Solve Water Case Study Solution is growing and the company is rather effective in bring in a large number of consumers at a potential price.
In addition to it, the second graph which shows the annual development in the Xylem Lets Solve Water Case Study Analysis overall properties, shows that the business is quite efficient in adding worth to its properties through its earnings. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the circulation of overall profits of the business. Huge 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 might move towards other service sections with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Xylem Lets Solve Water Case Study Solution in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. Along with it, the financial policies associated with the import of books impact the overall company at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Xylem Lets Solve Water Case Study Help consists of the issues of ecological communities over the use 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 harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the risk of substitution for the market.
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 competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Xylem Lets Solve Water Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Xylem Lets Solve Water Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing industry growth. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first gathers the data associated with the consumer demand, the prospective markets, the federal government guidelines and the data associated with the rivals presented in the market. After that, the company ought to choose one potential sector for its preliminary offering. It needs to collect research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company need to go for the initial offering. If the initial offering proves a success, the company must choose the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a hazard to the business's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
