American Barbell Stainless Steel Olympic Bar Case Study Solution and Analysis
American Barbell Stainless Steel Olympic Bar Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and American Barbell Stainless Steel Olympic Bar Case Study Solution in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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?
American Barbell Stainless Steel Olympic Bar Case Study Solution has specific strengths that can be utilized to reduce the threats, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of American Barbell Stainless Steel Olympic Bar Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position allows the company to think about a number of development chances without any fear of raising fund externally.
Together with the strengths, the business has specific weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of American Barbell Stainless Steel Olympic Bar Case Study Analysis are provided 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 growth. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing market is decreasing considering that 2008, impacting American Barbell Stainless Steel Olympic Bar Case Study Analysis too, however the development could be revived by availing particular chances provided in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific risks to American Barbell Stainless Steel Olympic Bar Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of American Barbell Stainless Steel Olympic Bar Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the risk of losing the customer base.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly overall incomes of American Barbell Stainless Steel Olympic Bar Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a big number of customers at a possible price.
Together with it, the 2nd graph which reveals the annual development in the American Barbell Stainless Steel Olympic Bar Case Study Help overall properties, shows that the company is rather effective in adding value to its assets through its earnings. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the circulation of total incomes of the company. Major part of the profits 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 sectors with a potential development to accomplish its future advancement objective.
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces impacting American Barbell Stainless Steel Olympic Bar Case Study Help organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the American Barbell Stainless Steel Olympic Bar Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books impact the total service at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative materials etc. China has the highest population in the world with a high population development, revealing the increasing number of customers of the American Barbell Stainless Steel Olympic Bar Case Study Help. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if certain actions would not be taken soon.
Environmental forces affecting American Barbell Stainless Steel Olympic Bar Case Study Solution consists of 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 non reusable and the ink used while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the American Barbell Stainless Steel Olympic Bar Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of American Barbell Stainless Steel Olympic Bar Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate option to prevent the declining market growth. Therefore, introduction of digital publishing might show to be an immediate service with low amount of danger for the business. However, the company could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first collects the information related to the customer need, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing market is declining considering that 2008, revealing a danger to the business's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.