Business Model Analysis For Entrepreneurs Case Study Solution and Analysis
Business Model Analysis For Entrepreneurs Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Business Model Analysis For Entrepreneurs Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Business Model Analysis For Entrepreneurs Case Study Solution has particular strengths that can be made use of to reduce the threats, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Business Model Analysis For Entrepreneurs Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position permits the company to consider numerous development opportunities with no fear of raising fund externally.
Along with the strengths, the company has certain weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of Business Model Analysis For Entrepreneurs Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional 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 certain expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Although, the development of the publishing market is decreasing given that 2008, impacting Business Model Analysis For Entrepreneurs Case Study Help as well, however the development might be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing market has posed particular threats to Business Model Analysis For Entrepreneurs Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Business Model Analysis For Entrepreneurs Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the hazard of losing the client base.
The company has a rather competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be determined. The total financial efficiency of the business could be examined by using the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly total earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Business Model Analysis For Entrepreneurs Case Study Help is growing and the company is rather effective in attracting a a great deal of consumers at a possible rate.
Together with it, the 2nd graph which shows the yearly development in the Business Model Analysis For Entrepreneurs Case Study Solution total assets, reveals that the company is quite effective in adding worth to its assets through its profits. The growth in possessions shows that the total value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided data could be the analysis concerning the circulation of total profits of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a prospective development to accomplish its future advancement goal.
PESTEL analysis might be conducted to discover the different external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be said that the total political forces impacting Business Model Analysis For Entrepreneurs Case Study Help organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful products and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the Business Model Analysis For Entrepreneurs Case Study Help. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental forces affecting Business Model Analysis For Entrepreneurs Case Study Analysis includes the issues 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 utilized while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the danger of substitution for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Business Model Analysis For Entrepreneurs Case Study Help consist of the suppliers of the paper for releasing files. 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 Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Business Model Analysis For Entrepreneurs Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in different market segments, with a significant focus on instructional publications. CIP functions 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 might wean the market share of Business Model Analysis For Entrepreneurs Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the business need an instant option to avoid the declining industry growth. The business could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to first collects the information connected to the customer demand, the possible markets, the government policies and the data connected to the rivals provided in the market. After that, the business must decide one possible segment for its preliminary offering. It should gather research that how it might distinguish its digital publishing from the existing rivals' items. The steps above the company need to go for the initial offering. The business ought to go for the other markets if the initial offering proves a success. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is declining considering that 2008, revealing a danger to the company's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.