Can Product Returns Make You Money Case Study Solution and Analysis
Introduction
Can Product Returns Make You Money Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and Can Product Returns Make You Money Case Study Help in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 scenario? Do the long important experience, technical resources and the capabilities 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
Can Product Returns Make You Money Case Study Help has specific strengths that can be used to decrease the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Can Product Returns Make You Money Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position permits the company to consider numerous development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of Can Product Returns Make You Money Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Can Product Returns Make You Money Case Study Analysis too, however the growth could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce 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 decrease its reliance over Chinese markets by using its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually positioned particular threats to Can Product Returns Make You Money Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Can Product Returns Make You Money Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. The overall financial efficiency of the business might be examined by using the charts provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Can Product Returns Make You Money Case Study Solution is growing and the company is quite efficient in bring in a large number of customers at a possible cost.
Together with it, the 2nd chart which reveals the annual development in the Can Product Returns Make You Money Case Study Solution total possessions, shows that the company is quite efficient in including worth to its assets through its revenues. The growth in assets reveals that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis regarding the distribution of overall revenues of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Can Product Returns Make You Money Case Study Solution service are high. The federal 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 customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative products etc. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Can Product Returns Make You Money Case Study Solution. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Can Product Returns Make You Money Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the files presented in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Can Product Returns Make You Money Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Can Product Returns Make You Money Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in numerous market segments, with a major focus on educational publications. CIP functions as a threat 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 Can Product Returns Make You Money Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Can Product Returns Make You Money Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the declining market development. For that reason, introduction of digital publishing might prove to be an immediate option with low amount of danger for the company. The company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to first collects the information related to the customer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the company must 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 market is declining given that 2008, revealing a danger to the business's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
