Barack Obama Case Study Solution and Analysis
Intro
Barack Obama Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Barack Obama Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 circumstance? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Barack Obama Case Study Analysis has specific strengths that can be utilized to lower the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Barack Obama Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position enables the company to consider numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which could increase restraints for the business in implementing its development program. The weak points of Barack Obama Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing because 2008, affecting Barack Obama Case Study Analysis as well, but the growth could be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has postured specific risks to Barack Obama Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Barack Obama Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard 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, etc.
• Entryway of new publishing companies in the market along with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be determined. The general financial performance of the business might be analyzed by utilizing the charts offered in the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Barack Obama Case Study Solution is growing and the business is rather effective in bring in a a great deal of consumers at a potential rate.
Along with it, the second chart which shows the yearly development in the Barack Obama Case Study Analysis total assets, reveals that the company is quite efficient in adding value to its possessions through its earnings. The development in possessions shows that the total worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis regarding the distribution of overall revenues of the company. Huge part of the earnings 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 potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading useful products etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Barack Obama Case Study Solution. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Barack Obama Case Study Analysis consists of the concerns of ecological neighborhoods over the usage 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 ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Barack Obama Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Barack Obama Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market sectors, with a significant concentrate on educational publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Barack Obama Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Barack Obama Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate 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 business 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 moving towards digital publishing and the company require an immediate option to prevent the decreasing market development. Therefore, introduction of digital publishing might prove to be an immediate option with low amount of risk for the business. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company ought to first collects the information related to the consumer need, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a danger to the business's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
