Amazon And Future Group Case Study Solution and Analysis
Intro
Amazon And Future Group Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and Amazon And Future Group Case Study Help in particular. These factors consist of;
• Entrance of the brand-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 numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Amazon And Future Group Case Study Help has particular strengths that can be utilized to minimize the dangers, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Amazon And Future Group Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the company to think about numerous development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which could increase constraints for the company in executing its development program. The weak points of Amazon And Future Group Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting Amazon And Future Group Case Study Analysis as well, but the development might be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using 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 reduce its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain dangers to Amazon And Future Group Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Amazon And Future Group Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total revenues of Amazon And Future Group Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is quite effective in attracting a large number of clients at a potential price.
Along with it, the 2nd graph which reveals the yearly growth in the Amazon And Future Group Case Study Help total properties, reveals that the company is rather efficient in including worth to its assets through its revenues. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of total revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Amazon And Future Group Case Study Help organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Amazon And Future Group Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market. Together with it, the economic policies related to the import of books impact the total organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Amazon And Future Group Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers 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 major providers of the Amazon And Future Group Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Amazon And Future Group Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a major focus on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Amazon And Future Group Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business 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 business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant solution to prevent the declining industry growth. Therefore, intro of digital publishing could prove to be an instant option with low quantity of threat for the company. However, the company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first gathers the information related to the customer demand, the possible markets, the government regulations and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a danger to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
