Amazon Com Inc Retailing Giant To High Technology Player Case Study Solution and Analysis
Introduction
Amazon Com Inc Retailing Giant To High Technology Player Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing info and communication services. Significant company sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its major products consist of books, regulars, online media, exhibits, research reports and so on. Amazon Com Inc Retailing Giant To High Technology Player Case Study Solution has actually ended up being a specialized info supplier and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing market in general and Amazon Com Inc Retailing Giant To High Technology Player Case Study Analysis in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions 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 made use of 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
Amazon Com Inc Retailing Giant To High Technology Player Case Study Help has specific strengths that can be utilized to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Amazon Com Inc Retailing Giant To High Technology Player Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong monetary position enables the company to think about numerous development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Amazon Com Inc Retailing Giant To High Technology Player Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional 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 certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Amazon Com Inc Retailing Giant To High Technology Player Case Study Solution also, but the development could be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has postured specific risks to Amazon Com Inc Retailing Giant To High Technology Player Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Amazon Com Inc Retailing Giant To High Technology Player Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market along with presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP might not be determined. However, the overall monetary efficiency of the business might be analyzed by utilizing the graphs given up the case Appendices. It could be evaluated from the Appendix III that the yearly 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 Amazon Com Inc Retailing Giant To High Technology Player Case Study Solution is growing and the company is rather efficient in attracting a a great deal of customers at a prospective price.
In addition to it, the 2nd chart which shows the annual growth in the Amazon Com Inc Retailing Giant To High Technology Player Case Study Help total possessions, reveals that the business is quite efficient in including value to its possessions through its incomes. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis concerning the distribution of overall profits of the company. Major part of the incomes 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 company segments with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people 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 Party of China. It could be said that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Amazon Com Inc Retailing Giant To High Technology Player Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books impact the general business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out informative materials etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of customers of the Amazon Com Inc Retailing Giant To High Technology Player Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Amazon Com Inc Retailing Giant To High Technology Player Case Study Analysis includes the concerns of environmental communities over the use 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. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers 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. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Amazon Com Inc Retailing Giant To High Technology Player Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Amazon Com Inc Retailing Giant To High Technology Player Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Amazon Com Inc Retailing Giant To High Technology Player Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use 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 present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor 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 immediate solution to prevent the declining industry development. Therefore, intro of digital publishing might prove to be an immediate service with low amount of danger for the business. Nevertheless, the company might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should initially collects the data related to the consumer demand, the possible markets, the government regulations and the information associated with the rivals presented in the market. After that, the business needs to choose one possible section for its preliminary offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' products. The steps above the company ought to go for the preliminary offering. The company must go for the other markets if the initial offering proves a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
