A Couple Of Squares Pricing For The Future 2 Case Study Solution and Analysis
Intro
A Couple Of Squares Pricing For The Future 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, A Couple Of Squares Pricing For The Future 2 Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
A Couple Of Squares Pricing For The Future 2 Case Study Help has particular strengths that can be utilized to minimize the risks, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of A Couple Of Squares Pricing For The Future 2 Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position allows the company to think about numerous development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which might increase restrictions for the business in executing its advancement program. The weak points of A Couple Of Squares Pricing For The Future 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting A Couple Of Squares Pricing For The Future 2 Case Study Solution also, however the growth could be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain risks to A Couple Of Squares Pricing For The Future 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of A Couple Of Squares Pricing For The Future 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly overall earnings of A Couple Of Squares Pricing For The Future 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is rather efficient in attracting a large number of consumers at a potential rate.
Together with it, the second chart which reveals the yearly growth in the A Couple Of Squares Pricing For The Future 2 Case Study Help total properties, reveals that the company is quite effective in including worth to its properties through its earnings. The development in possessions reveals that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the given data could be the analysis relating to the distribution of overall earnings of the business. Major 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 could move towards other company segments with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided 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, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting A Couple Of Squares Pricing For The Future 2 Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the A Couple Of Squares Pricing For The Future 2 Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the general organisation at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting A Couple Of Squares Pricing For The Future 2 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the virtual libraries on specific websites. The altering consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the A Couple Of Squares Pricing For The Future 2 Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence 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 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 rivals of A Couple Of Squares Pricing For The Future 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company require an instant option to prevent the declining market development. For that reason, intro of digital publishing could prove to be an immediate option with low quantity of danger for the company. Nevertheless, the company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the data related to the customer need, the possible markets, the government policies and the information related to the rivals provided in the market. After that, the business needs to decide one potential segment for its initial offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company ought to go for the initial offering. If the initial offering shows a success, the company needs to choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a threat to the business's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
