Young Man Inc 2 Case Study Solution and Analysis
Intro
Young Man Inc 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Young Man Inc 2 Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 abilities of the company could be used 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
Young Man Inc 2 Case Study Help has certain strengths that can be made use of to minimize the threats, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Young Man Inc 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position enables the business to consider numerous development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase constraints for the business in implementing its advancement program. The weak points of Young Man Inc 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Young Man Inc 2 Case Study Solution as well, but the growth might be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance 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 presented particular threats to Young Man Inc 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Young Man Inc 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP might not be computed. However, the overall financial performance of the company could be evaluated by utilizing the charts given up the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Young Man Inc 2 Case Study Solution is growing and the company is rather effective in attracting a large number of customers at a potential rate.
In addition to it, the 2nd chart which shows the annual development in the Young Man Inc 2 Case Study Help overall properties, shows that the business is quite efficient in adding value to its assets through its incomes. The development in properties reveals that the total value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the distribution of overall incomes of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful products and so on. China has the highest population on the planet with a high population growth, showing the increasing number of customers of the Young Man Inc 2 Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Young Man Inc 2 Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed 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 ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Young Man Inc 2 Case Study Solution include the suppliers 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Young Man Inc 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a major focus on educational publications. CIP serves as a risk 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 marketplace share of Young Man Inc 2 Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing industry with a yearly 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 Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 business segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company require an instant service to avoid the declining industry development. Therefore, intro of digital publishing could show to be an immediate solution with low amount of risk for the company. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data related to the customer demand, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a risk to the business's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
