Zhejiang Semir Garment Co Ltd 2 Case Study Solution and Analysis
Introduction
Zhejiang Semir Garment Co Ltd 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and Zhejiang Semir Garment Co Ltd 2 Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Zhejiang Semir Garment Co Ltd 2 Case Study Solution has specific strengths that can be utilized to minimize the dangers, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Zhejiang Semir Garment Co Ltd 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position permits the company to think about numerous development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Zhejiang Semir Garment Co Ltd 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining given that 2008, affecting Zhejiang Semir Garment Co Ltd 2 Case Study Solution as well, but the growth might be revived by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned specific hazards to Zhejiang Semir Garment Co Ltd 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Zhejiang Semir Garment Co Ltd 2 Case Study Help 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 particular techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total incomes of Zhejiang Semir Garment Co Ltd 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in attracting a large number of clients at a prospective cost.
In addition to it, the 2nd graph which shows the annual growth in the Zhejiang Semir Garment Co Ltd 2 Case Study Solution overall assets, shows that the business is rather effective in including value to its possessions through its revenues. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the distribution of overall earnings of the company. Huge 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 company sectors with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces affecting Zhejiang Semir Garment Co Ltd 2 Case Study Help company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Zhejiang Semir Garment Co Ltd 2 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Zhejiang Semir Garment Co Ltd 2 Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Zhejiang Semir Garment Co Ltd 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Zhejiang Semir Garment Co Ltd 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate service to avoid the declining market growth. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially collects the data related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company must 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 market is decreasing considering that 2008, revealing a risk to the company's long term presence, but the circumstance can be controlled by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
