Business Model Analysis For Entrepreneurs Case Study Solution and Analysis
Introduction
Business Model Analysis For Entrepreneurs Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing information and communication services. Significant company sections of the company consist of; books, regulars, consultancy and circulation. The business has a vast item portfolio and its significant items include books, periodicals, online media, exhibits, research reports etc. Business Model Analysis For Entrepreneurs Case Study Analysis has actually ended up being a specialized details company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Business Model Analysis For Entrepreneurs Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing market in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company 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
Business Model Analysis For Entrepreneurs Case Study Analysis has particular strengths that can be utilized to decrease the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Business Model Analysis For Entrepreneurs Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong financial position permits the business to consider numerous advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase restraints for the business in executing its advancement program. The weak points of Business Model Analysis For Entrepreneurs Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, 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 must propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Business Model Analysis For Entrepreneurs Case Study Help as well, but the growth could be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned particular risks to Business Model Analysis For Entrepreneurs Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Business Model Analysis For Entrepreneurs Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market in addition to existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the annual overall incomes of Business Model Analysis For Entrepreneurs Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is rather effective in drawing in a big number of consumers at a possible cost.
Along with it, the second chart which reveals the annual growth in the Business Model Analysis For Entrepreneurs Case Study Help total assets, shows that the company is quite efficient in including value to its possessions through its earnings. The development in assets shows that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the distribution of total profits of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the company and the recent patterns 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 substantial impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces affecting Business Model Analysis For Entrepreneurs Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Business Model Analysis For Entrepreneurs Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Business Model Analysis For Entrepreneurs Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market 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 files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Business Model Analysis For Entrepreneurs Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily 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 period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing market with a yearly 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 Consumers
• Growth chances.
• Avoiding the impact 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 customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining market development. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must initially gathers the data connected to the consumer need, the possible markets, the government policies and the information related to the competitors provided in the market. After that, the business needs to choose one potential sector for its initial offering. It needs to collect research that how it might separate its digital publishing from the existing rivals' items. After all the actions above the business should choose the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a threat to the business's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
