Beauty Library Salon Malaysia Case Study Solution and Analysis
Intro
Beauty Library Salon Malaysia Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Beauty Library Salon Malaysia Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several concerns 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 business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Beauty Library Salon Malaysia Case Study Analysis has particular strengths that can be utilized to minimize the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Beauty Library Salon Malaysia Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong financial position permits the company to think about several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Beauty Library Salon Malaysia Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Beauty Library Salon Malaysia Case Study Solution as well, but the development might be revived by availing particular chances provided in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has positioned specific risks to Beauty Library Salon Malaysia Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Beauty Library Salon Malaysia Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promo, quality items, etc.
• Entryway 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 quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be determined. Nevertheless, the total financial efficiency of the business might be examined by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Beauty Library Salon Malaysia Case Study Help is growing and the company is rather effective in drawing in a a great deal of clients at a possible rate.
Along with it, the second graph which shows the annual growth in the Beauty Library Salon Malaysia Case Study Solution overall possessions, reveals that the company is rather effective in including value to its possessions through its incomes. The development in possessions shows that the total value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis relating to the circulation of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Beauty Library Salon Malaysia Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Beauty Library Salon Malaysia Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs 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 Model).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Beauty Library Salon Malaysia 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 total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry 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 Beauty Library Salon Malaysia Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market segments, with a major focus on instructional publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Beauty Library Salon Malaysia Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Beauty Library Salon Malaysia Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry development. Introduction of digital publishing could show to be an instant option with low amount of risk for the business. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially collects the data related to the consumer need, the potential markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
