Angies List Case Study Solution and Analysis
Intro
Angies List Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Angies List Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Angies List Case Study Solution has particular strengths that can be made use of to minimize the risks, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Angies List Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position enables the business to think about a number of development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase restraints for the business in implementing its advancement program. The weak points of Angies List Case Study Solution are given as follows;
• Despite of being a science and innovation 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 growth. It must propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Angies List Case Study Help as well, however the development could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed specific dangers to Angies List Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Angies List Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. The total monetary efficiency of the company could be examined by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Angies List Case Study Solution is growing and the company is rather efficient in bring in a a great deal of clients at a potential cost.
In addition to it, the second graph which reveals the annual development in the Angies List Case Study Solution total assets, reveals that the business is quite efficient in including value to its assets through its profits. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis relating to the distribution of total profits of the business. Huge 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 sections with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided 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, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Angies List Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Angies List Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall company at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Angies List Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Angies List Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Angies List Case Study Analysis consist of;.
• 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 publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in various market sectors, with a significant concentrate on academic publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Angies List Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Angies List Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the company require an instant service to avoid the decreasing industry growth. Intro of digital publishing might show to be an instant service with low amount of threat for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the data related to the consumer demand, the possible markets, the government regulations and the information related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about 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 risk of failure for entrance in the new markets.
