Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Solution and Analysis
Introduction
Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering info, processing information and interaction services. Significant business sectors of the company consist of; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items include books, periodicals, online media, exhibits, research reports etc. Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Help has become a specialized info service provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Analysis in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be made use of 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
Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Solution has specific strengths that can be utilized to minimize the dangers, overcome 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 B Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position permits the business to think about a number of advancement chances without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Analysis too, but the development could be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company 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 lower its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has actually posed certain hazards to Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be calculated. The overall monetary performance of the business might be analyzed by utilizing the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Analysis is growing and the business is rather effective in attracting a a great deal of customers at a potential rate.
Along with it, the second chart which shows the annual development in the Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Solution overall properties, shows that the business is rather effective in including value to its assets through its revenues. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the given data could be the analysis relating to the distribution of total earnings of the business. Major part of the revenues 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 organisation sectors with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the total business at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Yanzhou Coal Mining Company Limited Overseas Acquisitions B 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 needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in new entrants to the publishing market. Nevertheless, 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.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the files provided in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry 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 documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 also founded in the exact same period as Yanzhou Coal Mining Company Limited Overseas Acquisitions B Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate option to prevent the decreasing industry development. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information connected to the consumer demand, the possible markets, the federal government policies and the data associated with the rivals provided in the market. After that, the business needs to decide one prospective section for its preliminary offering. It must gather research study that how it could distinguish its digital publishing from the existing rivals' items. The steps above the company should go for the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, revealing a danger to the business's long term existence, but the circumstance can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
