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Atari Between A Rock And A Hard Place Case Study Solution and Analysis


Intro

Atari Between A Rock And A Hard Place Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.

Crucial Problems

CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and Atari Between A Rock And A Hard Place Case Study Help in specific. These elements consist of;

• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
Executive Summary
The change 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 valuable experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Atari Between A Rock And A Hard Place Case Study Solution has specific strengths that can be used to lower the risks, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;

• The long term experience of Atari Between A Rock And A Hard Place Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position permits the company to think about several development opportunities with no worry of raising fund externally.

Weak points

Along with the strengths, the business has specific weak points which could increase restraints for the company in implementing its development program. The weaknesses of Atari Between A Rock And A Hard Place Case Study Analysis are provided as follows;

• Despite of being a science and technology publishing company, the company still has conventional 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 particular expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing market is decreasing given that 2008, impacting Atari Between A Rock And A Hard Place Case Study Help as well, however the growth might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;

• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.

Hazards

The altering macro patterns in the market and increasing competition in the publishing market has presented certain hazards to Atari Between A Rock And A Hard Place Case Study Analysis consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries might result in declining market share of Atari Between A Rock And A Hard Place Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the hazard of losing the client base.

Monetary Analysis.
Swot Analysis
Due to absence of data, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly overall profits of Atari Between A Rock And A Hard Place Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite efficient in attracting a big number of consumers at a possible rate.

In addition to it, the 2nd chart which reveals the annual development in the Atari Between A Rock And A Hard Place Case Study Analysis overall assets, reveals that the business is quite effective in adding worth to its possessions through its revenues. The development in properties shows that the overall value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).

Another monetary analysis of the business using the provided information might be the analysis regarding the distribution 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 shown in the Case Appendix V. The business could move towards other company sectors with a possible development to achieve its future development objective.

PESTEL Analysis

PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Atari Between A Rock And A Hard Place Case Study Help organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.

Affordable.

Economic forces impacting the publishing sector in general and the Atari Between A Rock And A Hard Place Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies related to the import of books affect the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.

Social and Demographical.

The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.

Technological.

Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Atari Between A Rock And A Hard Place Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.

Industry Analysis (Porter's Five Forces Design).

Porter's 5 Forces Model could be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.

Hazard of New Entrants.

Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.

Danger of Substitution.

Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the files provided in the digital libraries on specific websites. The altering consumer choices towards digital learning increase the threat of alternative for the market.

Competitive Rivalry.

Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Atari Between A Rock And A Hard Place Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.

Rivals Analysis.

CMP runs in a highly competitive market 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 Atari Between A Rock And A Hard Place Case Study Solution include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sectors, with a significant 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 Atari Between A Rock And A Hard Place Case Study Analysis easily in the current market situation.

Posts and telecommunication Press (PTP).

It was likewise founded in the exact same duration as Atari Between A Rock And A Hard Place Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 business sections to the new one can lead the business to lose need of its items in the market.

Suggestions

With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the decreasing industry development. Therefore, introduction of digital publishing could prove to be an immediate option with low quantity of risk for the company. The company could also consider the expansion program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its item portfolio, the business must first collects the data associated with the customer need, the possible markets, the federal government regulations and the information related to the rivals provided in the market. After that, the business ought to decide one possible sector for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' items. The steps above the company ought to go for the preliminary offering. The business ought to go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.

Conclusion

The growth of the publishing market is declining since 2008, showing a risk to the business's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.

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