Young Man Inc Case Study Solution and Analysis
Introduction
Young Man Inc Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Young Man Inc Case Study Analysis in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Young Man Inc Case Study Help has particular strengths that can be used to decrease the dangers, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Young Man Inc Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong monetary position permits the company to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restraints for the business in implementing its development program. The weaknesses of Young Man Inc Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Young Man Inc Case Study Analysis also, but the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned certain hazards to Young Man Inc Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Young Man Inc Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard 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 firms in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total incomes of Young Man Inc Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a large number of consumers at a prospective rate.
In addition to it, the 2nd graph which reveals the annual growth in the Young Man Inc Case Study Solution total assets, shows that the business is quite efficient in including value to its possessions through its profits. The growth in properties reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis concerning the circulation of total profits of the company. Major part of the incomes 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 organisation sectors with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Young Man Inc Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Young Man Inc Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the digital libraries on certain sites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Young Man Inc Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, 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 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in various market sectors, with a significant focus on instructional 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 could wean the market share of Young Man Inc Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Young Man Inc Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an instant service to avoid the declining industry growth. Introduction of digital publishing might show to be an instant solution with low quantity of risk for the company. Nevertheless, the business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first gathers the information related to the customer demand, the potential markets, the federal government policies and the data connected to the competitors presented in the market. After that, the company must decide one potential section for its preliminary offering. It ought to gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the steps above the company need to opt for the preliminary offering. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a hazard to the company's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
