Amazon Case Study Solution and Analysis
Introduction
Amazon Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing information and communication services. Significant business sections of the business include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. Amazon Case Study Solution has actually become a specialized info service provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and Amazon Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be made use of 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 Case Study Solution has specific strengths that can be made use of to minimize the risks, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Amazon Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong financial position enables the business to think about several development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which could increase restraints for the company in executing its development program. The weaknesses of Amazon Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing because 2008, impacting Amazon Case Study Solution too, but the development might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has positioned specific threats to Amazon Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Amazon Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be determined. The overall monetary efficiency of the company might be evaluated by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Amazon Case Study Solution is growing and the business is quite efficient in attracting a large number of clients at a potential rate.
In addition to it, the 2nd graph which shows the annual growth in the Amazon Case Study Help overall properties, shows that the company is rather efficient in adding worth to its possessions through its revenues. The growth in possessions shows that the total worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis regarding the circulation of overall earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business 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 government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Amazon Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the overall organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative materials etc. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Amazon Case Study Solution. Nevertheless, the customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Amazon Case Study Help includes the issues of environmental 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 needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Amazon Case Study Solution include the providers 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 Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Amazon Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks second and third in various market sectors, with a major focus on academic publications. CIP acts as a danger 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 Amazon Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 company sectors to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. Intro of digital publishing could prove to be an instant option with low quantity of danger for the business. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to first collects the data related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the company should decide one potential section for its preliminary offering. It should collect research that how it might distinguish its digital publishing from the existing competitors' products. After all the actions above the business must go for the preliminary offering. The company must go for the other markets if the initial offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a hazard to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
