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Yushan Bicycles Learning To Ride Abroad Case Study Solution and Analysis


Intro

Yushan Bicycles Learning To Ride Abroad Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing details and interaction services. Major organisation sections of the company consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports etc. Yushan Bicycles Learning To Ride Abroad Case Study Solution has actually ended up being a specialized details provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.

Important Issues

CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and Yushan Bicycles Learning To Ride Abroad Case Study Solution in particular. These factors include;

• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
Executive Summary
The improvement of the macro markets have raised numerous 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 utilized 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


Yushan Bicycles Learning To Ride Abroad Case Study Analysis has specific strengths that can be made use of to reduce the threats, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;

• The long term experience of Yushan Bicycles Learning To Ride Abroad Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong monetary position enables the business to think about a number of development opportunities without any fear of raising fund externally.

Weak points

In addition to the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Yushan Bicycles Learning To Ride Abroad Case Study Analysis are given as follows;

• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is decreasing considering that 2008, impacting Yushan Bicycles Learning To Ride Abroad Case Study Analysis as well, however the growth might be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;

• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.

Dangers

The changing macro patterns in the market and increasing competitors in the publishing industry has posed particular risks to Yushan Bicycles Learning To Ride Abroad Case Study Solution including;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Yushan Bicycles Learning To Ride Abroad Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the danger of losing the consumer base.

Monetary Analysis.
Swot Analysis
The business has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be determined. The total financial performance of the company might be analyzed by using the graphs provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Yushan Bicycles Learning To Ride Abroad Case Study Help is growing and the business is rather efficient in bring in a a great deal of consumers at a prospective cost.

Together with it, the 2nd chart which reveals the annual growth in the Yushan Bicycles Learning To Ride Abroad Case Study Solution overall possessions, reveals that the business is rather effective in including value to its assets through its incomes. The growth in properties reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).

Another monetary analysis of the business using the given data might be the analysis relating to the distribution of total incomes of the company. 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 business might move towards other company sections with a potential growth to achieve its future development objective.

PESTEL Analysis

PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It might 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.

Economical.

Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, 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 development, the customer's choices towards reading informative materials etc. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Yushan Bicycles Learning To Ride Abroad Case Study Analysis. However, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing customer preferences.

Technological.

Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Yushan Bicycles Learning To Ride Abroad Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should 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 controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.

Industry Analysis (Porter's 5 Forces Model).

Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.

Hazard of New Entrants.

Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.

Risk of Substitution.

Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the digital libraries on particular sites. The altering customer choices towards digital learning increase the risk of substitution for the industry.

Competitive Competition.

Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Yushan Bicycles Learning To Ride Abroad Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.

Bargaining Power of Buyer.

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 market saturation, the buyers requires high quality documents at competitive rates.

Rivals Analysis.

CMP operates in a highly 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 Yushan Bicycles Learning To Ride Abroad Case Study Analysis include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis among the close competitors of CMP. Founded in the very same period, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a significant focus on academic publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Yushan Bicycles Learning To Ride Abroad Case Study Analysis easily in the current market scenario.

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 terms of organisation scale. It is also one of the prominent players in the publishing market with a yearly total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its items in the market.

Suggestions

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 preferences are shifting towards digital publishing and the business need an instant option to prevent the decreasing market development. For that reason, intro of digital publishing could prove to be an instant option with low amount of threat for the business. However, the company might also consider the expansion program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its item portfolio, the company must first collects the data related to the consumer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.

Conclusion

Although, the growth of the publishing industry is declining considering that 2008, revealing a danger to the business's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.

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