Amazon Case Study Solution and Analysis
Amazon Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and Amazon Case Study Help in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised several 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 abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Amazon Case Study Help has particular strengths that can be used to reduce the hazards, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Amazon Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong financial position allows the company to think about several development chances without any fear of raising fund externally.
Together with the strengths, the business has specific weak points which could increase constraints for the company in implementing its advancement program. The weak points of Amazon Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term development.
The development of the publishing industry is declining given that 2008, affecting Amazon Case Study Solution as well, however the growth could be revived 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 consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
The altering macro patterns in the market and increasing competitors in the publishing market has postured specific hazards to Amazon Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Amazon Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the consumer base.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. However, the total financial efficiency of the business might be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Amazon Case Study Help is growing and the company is rather efficient in attracting a a great deal of consumers at a prospective price.
Together with it, the second graph which shows the annual development in the Amazon Case Study Solution overall assets, reveals that the company is quite effective in adding worth to its properties through its earnings. The growth in properties reveals 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 information could be the analysis concerning the circulation of total incomes of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a potential development to accomplish its future development goal.
PESTEL analysis might be carried out to learn the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Amazon Case Study Help company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful materials etc. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Amazon Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Amazon Case Study Help includes the issues of environmental communities over the usage 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 should not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Amazon Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 documents at competitive rates.
CMP operates in an extremely competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Amazon Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company require an instant service to prevent the decreasing market growth. The company could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data related to the customer need, the potential markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
The growth of the publishing market is declining because 2008, revealing a hazard to the company's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.