Autozone Case Study Solution and Analysis
Introduction
Autozone Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Autozone Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several questions 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 capabilities of the business could be made use of 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
Autozone Case Study Solution has particular strengths that can be made use of to lower the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Autozone Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the company to consider numerous advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Autozone Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing because 2008, affecting Autozone Case Study Help as well, but the development could be revived by availing certain chances provided in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented specific threats to Autozone Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Autozone Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market together with existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. Nevertheless, the general monetary efficiency of the company might be examined by using the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Autozone Case Study Solution is growing and the business is quite efficient in bring in a large number of consumers at a potential cost.
Along with it, the second graph which shows the annual development in the Autozone Case Study Analysis overall properties, reveals that the business is rather effective in adding worth to its assets through its revenues. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis regarding the circulation of overall incomes of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces impacting Autozone Case Study Help business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Autozone Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the overall service at CPM. China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading useful materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Autozone Case Study Solution. However, the customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Autozone Case Study Solution consists of the concerns of ecological communities 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 should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Autozone Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer 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 files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Autozone Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market growth. Intro of digital publishing might show to be an instant solution with low amount of danger for the business. Nevertheless, the company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first collects the data related to the customer need, the possible markets, the government guidelines and the information connected to the competitors presented in the market. After that, the company needs to decide one potential section for its initial offering. It needs to collect research that how it might separate its digital publishing from the existing competitors' items. After all the steps above the business need to opt for the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, showing a danger to the business's long term existence, however the situation can be controlled by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
