Alibaba Group Case Study Solution and Analysis
Intro
Alibaba Group Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing details and communication services. Major service sectors of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports etc. Alibaba Group Case Study Solution has actually become a specialized information service provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Alibaba Group Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Alibaba Group Case Study Help has specific strengths that can be made use of to reduce the risks, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Alibaba Group Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position permits the business to think about several development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restraints for the business in executing its development program. The weaknesses of Alibaba Group Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting Alibaba Group Case Study Solution as well, but the growth might be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has postured certain hazards to Alibaba Group Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Alibaba Group Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. The total monetary performance of the business could be analyzed by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Alibaba Group Case Study Analysis is growing and the company is quite effective in drawing in a large number of clients at a potential price.
Along with it, the 2nd graph which shows the annual development in the Alibaba Group Case Study Analysis total possessions, shows that the business is rather efficient in adding worth to its assets through its earnings. The growth in possessions reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis relating to the distribution of overall profits of the company. 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 business could move towards other organisation segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading informative materials etc. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Alibaba Group Case Study Analysis. Nevertheless, the customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Alibaba Group Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations 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 Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the virtual libraries on certain sites. The altering customer choices towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Alibaba Group Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Alibaba Group Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate option to avoid the decreasing market development. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the data connected to the customer need, the potential markets, the federal government policies and the information connected to the competitors provided in the market. After that, the company must choose one prospective sector for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing rivals' items. After all the actions above the company must choose the preliminary offering. The business ought to go for the other markets if the initial offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a threat to the business's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The business could think about 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.
