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Awesome Shoes Inc Case Analysis

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Awesome Shoes Inc Case Study Solution and Analysis


Intro

Awesome Shoes Inc 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 information service provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Important Issues

CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and Awesome Shoes Inc Case Study Analysis in specific. These elements consist of;

• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
Executive Summary
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 situation? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Awesome Shoes Inc Case Study Help has certain strengths that can be utilized to minimize the hazards, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;

• The long term experience of Awesome Shoes Inc Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position permits the company to think about numerous development chances without any worry of raising fund externally.

Weaknesses

In addition to the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Awesome Shoes Inc Case Study Help are provided as follows;

• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing industry is decreasing because 2008, impacting Awesome Shoes Inc Case Study Solution as well, but the development might be restored by availing certain opportunities 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 acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.

Dangers

The changing macro trends in the market and increasing competition in the publishing industry has presented specific hazards to Awesome Shoes Inc Case Study Analysis including;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Awesome Shoes Inc Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the customer base.

Monetary Analysis.
Swot Analysis
The company has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be determined. However, the overall financial performance of the company might be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Awesome Shoes Inc Case Study Help is growing and the business is quite efficient in drawing in a a great deal of customers at a possible price.

Along with it, the second graph which reveals the annual development in the Awesome Shoes Inc Case Study Help overall properties, shows that the company is rather effective in including value to its possessions through its earnings. The development in possessions shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).

Another monetary analysis of the business utilizing the given data might be the analysis concerning the distribution of total revenues of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a potential development to attain its future development goal.

PESTEL Analysis

PESTEL analysis could be carried out to learn the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Awesome Shoes Inc Case Study Solution company are high. The government policies regarding the publishing sector are also increasing with the passage of time.

Affordable.

Economic forces affecting the publishing sector in general and the Awesome Shoes Inc Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the total organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's choices towards reading useful materials etc. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Awesome Shoes Inc Case Study Solution. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer preferences.

Technological.

Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Awesome Shoes Inc Case Study Solution consists of the issues of ecological 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 needs to not be harmful for the environment.

Legal.

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

Industry Analysis (Porter's 5 Forces Model).

Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided 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 industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.

Hazard of Alternative.

Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the hazard of alternative for the market.

Competitive Rivalry.

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

Bargaining Power of Provider.

The major suppliers of the Awesome Shoes Inc Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.

Competitors Analysis.

CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Awesome Shoes Inc Case Study Analysis include;.

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

Chemical Market Press (CIP).

CIP acts as a risk 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 rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.

Cons

• Competitors in the market by CIP, who has prior concentrate 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 products in the market.

Recommendations

With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market development. Introduction of digital publishing might show to be an immediate solution with low quantity of danger for the business. Nevertheless, 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 product portfolio, the company ought to first gathers the information related to the consumer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

The growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.

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