Research On The Competitive Strategies Of Local Publishing Group

With the deepening reform of China’s cultural system,Chinese publishing industry must face a strategic issue of enhancing the enterprises’ Core Competence.This paper carries out research on the case study of Central China Publishing and Media Group(Abbreviation of Central China Publishing and Media Investment Holding Group Co.,Ltd);in order to explore the competitive strategy of China’s publishing enterprises under the new background.In July 2003,the General Office of the CPC Central Committee and the General Office of the State Council transmitted a document about deepening reform of cultural system,the document fixed 9 Provinces and cities and 35 cultural units as pilot.This launched the pilot work of cultural restructuring,and further deepened the reform of cultural system.Under this background,China’s local publishing groups underwent the development of establishing the media group,transforming from state-run institution into enterprise and listing and financing.Up until now,it has been 10 years since the establishment of the pilot units.This ten-year is undoubtedly a microcosm of the development history of China’s publishing group,and also a microcosm of China’s cultural system reform.The foreign large publishing media groups use market competition to merge and restructure,which is different with what is in China.The establishment of Chinese publishing media group is always by administrative measures,and with strong characteristic of administrative division.This process would inevitably cause congenital deficiency.However,with the Chinese government carrying out the promise of WTO,the culture industry market would gradually open to foreign capitals and private enterprises,also the digital publishing technology as the representative of the emerging forces is developing rapidly,the domestic publishing industry competition would become more and more intensified.In order to promote the developments of the publishing groups,and gain a space in the fierce competition,the publishing groups need to focus on using the macro environment and internal conditions,digging own advantages,strongly response to external threats.Therefore,it is necessary to adapt appropriate competition strategies.On the basis of the above-mentioned background,this paper analyses the market competition situations of the local publishing group,shows the competition strategy status and problems of China’s publishing enterprise,and provides the China’s local publishing group with an important reference in selecting and carrying out the competition strategies.Specifically,the main research work includes the following.First,this paper studies the formation and evolution of the local publishing group.This paper reviews the formation and evolution of China’s publishing group and Central China Publishing and Media group,summarizes the development orbit of China’s local publishing group:the initial exploration period(1980s-2002)and the cultural restructuring and deepening enterprise transform period(since 2003).Second,SWOT analysis of the local publishing group.This part summarizes the internal strengths and weaknesses,external opportunities and threats of the local publishing group by using SWOT analysis,makes objective analysis based on the internal and external environment condition and their interactions.This provides decision basis for the following study on the competitive strategy.In terms of the internal aspects,the local publishing group shows some advantages in its publication funds,publishing resources and other advantages,and the local publishing group also shows some disadvantages in company management and market exploitation.In terms of the external aspects,the support from the country for the cultural industry and the support for the local cultural economy provide opportunities for the local publishing group.The local publishing group is mainly facing two external threats,one is the traditional publishing enterprise from other division,and the other is caused by the private publishing group.Third,analysis the local publishing group’s collectivization operation by using the theory of overall cost leadership strategy.This part indicates that publishing group must choose the correct cost leadership strategy in order to win in the market competition and build up economic foundation in the future.Specific requirements including:analyzing the influence factors of publishing enterprises’ cost behavior,identifying cost driving factors,and controlling the cost driving factors or reconstructing the enterprises’ value chain to obtain the cost advantage.After analyzing the errors which enterprises carried out the overall cost leadership strategy,this part summarizes and put forward the author’s suggestions in making use of the overall cost leadership strategy.Fourth,analysis on the local publishing group’s situation of selecting and implementing differentiation competition theory.This part uses the differentiation competition theory combining with the actual situation and market characteristics of the local publishing group,indicates the significance of adapting the differentiation competition theory,points out the path that how the differentiation competition strategy carry out in operation,and analyses the driving factor of differentiation competition strategy in its management.In the end,this part summarizes the local publishing group’s differentiation competition strategies in publication planning,establishing the media brand,transforming distribution channels and specialized services,and also finds out the problems and puts forward the corresponding proposals.Fifth,this part analyzes and summarizes the focus strategy of the local publishing group.On the basis of the previous discussions,combining the local publishing group’s industry practice,this part analyzes the risks and requirements in carrying out focus strategy,and also points out specific suggestions based on the local publishing group’s practice.Finally,this part uses Central China Publishing and Media Group as a case study,analyses its circumstances in the selecting and implementing competitive strategies of overall cost leadership,differentiation competition and focus.It hopes that through the case study,it would provide a reference for China’s local publishing groups.