A Couple Of Squares Pricing For The Future Case Study Solution and Analysis
Intro
A Couple Of Squares Pricing For The Future Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing market in general and A Couple Of Squares Pricing For The Future Case Study Solution in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change 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 capabilities of the company 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 Case Study Solution has particular strengths that can be used to minimize the threats, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of A Couple Of Squares Pricing For The Future Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position permits the company to consider several development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which could increase restrictions for the company in executing its development program. The weaknesses of A Couple Of Squares Pricing For The Future Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining because 2008, affecting A Couple Of Squares Pricing For The Future Case Study Analysis as well, but the growth could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has presented specific risks to A Couple Of Squares Pricing For The Future Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of A Couple Of Squares Pricing For The Future Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the business could be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of A Couple Of Squares Pricing For The Future Case Study Analysis is growing and the company is quite efficient in drawing in a large number of consumers at a potential price.
Together with it, the 2nd graph which shows the annual development in the A Couple Of Squares Pricing For The Future Case Study Analysis overall assets, reveals that the company is rather efficient in including worth to its possessions through its revenues. The growth in assets shows that the total worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the circulation of total profits of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover 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 company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting A Couple Of Squares Pricing For The Future Case Study Analysis includes the concerns of ecological 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 ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the digital libraries on certain websites. The altering customer choices towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the A Couple Of Squares Pricing For The Future Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of A Couple Of Squares Pricing For The Future Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and third in numerous market sections, with a major concentrate on educational publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of A Couple Of Squares Pricing For The Future Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 service segments to the 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 market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing industry development. Intro of digital publishing might prove to be an instant solution with low quantity of risk for the business. However, the company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the consumer need, 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 needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a threat to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
