Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Solution and Analysis
Intro
Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Analysis has certain strengths that can be made use of to minimize the threats, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong monetary position allows the business to consider a number of development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Solution are offered 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 growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Help as well, but the growth could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has postured certain hazards to Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total profits of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite effective in attracting a large number of customers at a potential price.
Together with it, the second chart which shows the yearly development in the Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Analysis total properties, reveals that the business is rather effective in adding worth to its possessions through its incomes. The growth in assets reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the offered data might be the analysis relating to the distribution of total revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the performance of the company and the recent trends 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 could have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings 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 development, the customer's choices towards reading helpful materials etc. China has the highest population on the planet with a high population development, revealing the increasing number of customers of the Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on specific websites. The changing customer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Help 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 Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sectors, with a significant concentrate on academic publications. CIP serves as a threat 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 Alibabas Jack Ma Rise Of The New Chinese Entrepreneur Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact 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 popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the decreasing market development. For that reason, intro of digital publishing might show to be an instant option with low amount of danger for the business. Nevertheless, the company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should initially collects the information related to the customer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a risk to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
