Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Solution and Analysis
Introduction
Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing details and communication services. Major organisation sectors of the business consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Solution has actually ended up being a specialized info provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing market in basic and Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Help in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several 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 company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Help has specific strengths that can be used to lower the risks, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position permits the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase constraints for the business in executing its advancement program. The weaknesses of Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Analysis as well, however the development might be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has positioned certain risks to Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. Nevertheless, the general financial performance of the business might be examined by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Analysis is growing and the business is quite efficient in attracting a large number of consumers at a potential cost.
Along with it, the 2nd chart which reveals the yearly development in the Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Help total properties, reveals that the business is quite effective in including worth to its properties through its incomes. The development in properties reveals that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered information could be the analysis regarding the circulation of total incomes of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies related to the import of books impact the overall service at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out helpful materials etc. China has the highest population in the world with a high population growth, revealing the increasing variety of customers of the Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Solution. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Analysis includes the concerns 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 used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sections, with a significant concentrate on instructional publications. CIP acts 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 marketplace share of Yanzhou Coal Mining Company Limited Overseas Acquisitions A Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors 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 competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing industry development. For that reason, intro of digital publishing might show to be an instant service with low quantity of danger for the company. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should initially gathers the data connected to the customer need, the possible markets, the federal government guidelines and the information connected to the rivals provided in the market. After that, the business must choose one potential sector for its preliminary offering. It should gather research that how it could separate its digital publishing from the existing rivals' products. After all the steps above the business must go for the initial offering. If the preliminary offering shows a success, the business ought to choose the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a threat to the company's long term existence, however the circumstance can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
