Atari Between A Rock And A Hard Place Case Study Solution and Analysis
Atari Between A Rock And A Hard Place Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Atari Between A Rock And A Hard Place Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Atari Between A Rock And A Hard Place Case Study Analysis has particular strengths that can be made use of to minimize the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Atari Between A Rock And A Hard Place Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the business to think about numerous advancement chances without any worry of raising fund externally.
In addition to the strengths, the company has specific weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Atari Between A Rock And A Hard Place Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is decreasing because 2008, affecting Atari Between A Rock And A Hard Place Case Study Help as well, but the growth might be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned particular hazards to Atari Between A Rock And A Hard Place Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Atari Between A Rock And A Hard Place Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the risk of losing the customer base.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of Atari Between A Rock And A Hard Place Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is rather effective in attracting a large number of clients at a possible rate.
In addition to it, the second chart which shows the annual development in the Atari Between A Rock And A Hard Place Case Study Analysis total properties, shows that the company is rather effective in including worth to its properties through its revenues. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis regarding the distribution of overall earnings of the company. Major 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 possible development to attain its future development goal.
PESTEL analysis could be conducted to find out the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Atari Between A Rock And A Hard Place Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the overall organisation at CPM. However, China's economic conditions are quite 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 must focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental forces impacting Atari Between A Rock And A Hard Place Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring 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 enter in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Atari Between A Rock And A Hard Place Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 files at competitive costs.
CMP runs in an extremely competitive industry with the presence 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 Atari Between A Rock And A Hard Place Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 might wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
As the choices are moving towards digital publishing and the company require an instant service to avoid the declining market development. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the consumer need, the prospective markets, the government guidelines and the information related to the rivals presented in the market. After that, the business should decide one possible section for its initial offering. It should gather research study that how it might separate its digital publishing from the existing rivals' items. The actions above the business ought to go for the initial offering. If the preliminary offering proves a success, the business ought to choose the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing market is declining because 2008, showing a threat to the business's long term existence, however the situation can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.