American Barbell Stainless Steel Olympic Bar Case Study Solution and Analysis
Intro
American Barbell Stainless Steel Olympic Bar Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing info and interaction services. Significant service segments of the business include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports and so on. American Barbell Stainless Steel Olympic Bar Case Study Analysis has become a specialized info company and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and American Barbell Stainless Steel Olympic Bar Case Study Solution in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
American Barbell Stainless Steel Olympic Bar Case Study Help has particular strengths that can be utilized to reduce the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of American Barbell Stainless Steel Olympic Bar Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position allows the business to consider a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase constraints for the business in implementing its advancement program. The weak points of American Barbell Stainless Steel Olympic Bar Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting American Barbell Stainless Steel Olympic Bar Case Study Analysis also, but the growth might be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has postured particular threats to American Barbell Stainless Steel Olympic Bar Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of American Barbell Stainless Steel Olympic Bar Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the annual total revenues of American Barbell Stainless Steel Olympic Bar Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in attracting a big number of consumers at a potential price.
In addition to it, the 2nd chart which reveals the annual development in the American Barbell Stainless Steel Olympic Bar Case Study Solution total possessions, reveals that the company is rather effective in adding value to its properties through its incomes. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis regarding the circulation of total earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income 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.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting American Barbell Stainless Steel Olympic Bar Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks 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. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on particular websites. The altering customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the American Barbell Stainless Steel Olympic Bar Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest 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 marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of American Barbell Stainless Steel Olympic Bar Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in different market sectors, with a major concentrate on instructional publications. CIP acts as a risk 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 marketplace share of American Barbell Stainless Steel Olympic Bar Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as American Barbell Stainless Steel Olympic Bar Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is advised 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 growth. For that reason, introduction of digital publishing could show to be an immediate option with low quantity of risk for the company. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must first collects the information related to the customer need, the potential markets, the federal government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to 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 risk to the business's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
