Yanzhou Bids For Felix Resources Case Study Solution and Analysis
Yanzhou Bids For Felix Resources Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in general and Yanzhou Bids For Felix Resources Case Study Help in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change 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 important experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Yanzhou Bids For Felix Resources Case Study Solution has specific strengths that can be used to decrease the threats, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Yanzhou Bids For Felix Resources Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position allows the business to think about several development chances without any fear of raising fund externally.
Together with the strengths, the business has specific weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Yanzhou Bids For Felix Resources Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is declining since 2008, affecting Yanzhou Bids For Felix Resources Case Study Analysis as well, however the development might be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific hazards to Yanzhou Bids For Felix Resources Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Yanzhou Bids For Felix Resources Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the consumer base.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly overall incomes of Yanzhou Bids For Felix Resources Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite effective in attracting a big number of clients at a possible cost.
Together with it, the second chart which reveals the yearly development in the Yanzhou Bids For Felix Resources Case Study Analysis total assets, reveals that the business is rather effective in adding worth to its properties through its earnings. The growth in assets shows that the total value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the circulation of total profits of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a possible growth to achieve its future advancement goal.
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces impacting Yanzhou Bids For Felix Resources Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Yanzhou Bids For Felix Resources Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. 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 Supplier.
The significant suppliers of the Yanzhou Bids For Felix Resources Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 requires high quality documents at competitive prices.
CMP runs in a highly competitive industry with the existence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Yanzhou Bids For Felix Resources Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could 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 existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business require an instant service to avoid the decreasing market growth. The company could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first collects the information related to the consumer demand, the prospective markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
The growth of the publishing industry is declining considering that 2008, revealing a danger to the business's long term presence, however the situation can be managed by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.