Zensar The Future Of Vision Communities A 2 Case Study Solution and Analysis
Intro
Zensar The Future Of Vision Communities A 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and Zensar The Future Of Vision Communities A 2 Case Study Help in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? 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
Zensar The Future Of Vision Communities A 2 Case Study Solution has specific strengths that can be utilized to lower the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Zensar The Future Of Vision Communities A 2 Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position allows the company to think about a number of development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Zensar The Future Of Vision Communities A 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Zensar The Future Of Vision Communities A 2 Case Study Help as well, however the growth might be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific dangers to Zensar The Future Of Vision Communities A 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Zensar The Future Of Vision Communities A 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall revenues of Zensar The Future Of Vision Communities A 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite efficient in attracting a big number of clients at a potential price.
Along with it, the second graph which shows the yearly development in the Zensar The Future Of Vision Communities A 2 Case Study Solution overall possessions, shows that the company is quite effective in including worth to its assets through its profits. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the distribution of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the total political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Zensar The Future Of Vision Communities A 2 Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Zensar The Future Of Vision Communities A 2 Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the files provided in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the threat of substitution 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 etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Zensar The Future Of Vision Communities A 2 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Zensar The Future Of Vision Communities A 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a major concentrate on instructional publications. CIP serves as a danger 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 market share of Zensar The Future Of Vision Communities A 2 Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate solution to avoid the declining industry growth. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first gathers the data related to the consumer demand, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, showing a threat to the company's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
