Cardagin Local Mobile Rewards Case Study Solution and Analysis
Introduction
Cardagin Local Mobile Rewards Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Cardagin Local Mobile Rewards Case Study Help in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cardagin Local Mobile Rewards Case Study Analysis has certain strengths that can be used to lower the hazards, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Cardagin Local Mobile Rewards Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position permits the business to think about a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Cardagin Local Mobile Rewards Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Cardagin Local Mobile Rewards Case Study Help also, however the growth could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has positioned certain threats to Cardagin Local Mobile Rewards Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Cardagin Local Mobile Rewards Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be determined. The total monetary efficiency of the company might be analyzed by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Cardagin Local Mobile Rewards Case Study Solution is growing and the business is quite effective in bring in a a great deal of consumers at a potential price.
Along with it, the second graph which shows the yearly development in the Cardagin Local Mobile Rewards Case Study Solution overall assets, shows that the company is rather effective in including worth to its properties through its earnings. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the distribution of overall revenues of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered 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 government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise 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 income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful materials and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Cardagin Local Mobile Rewards Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Cardagin Local Mobile Rewards Case Study Analysis consists of the concerns of ecological neighborhoods 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 should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the virtual libraries on certain sites. The changing customer choices towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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 rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Cardagin Local Mobile Rewards Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Cardagin Local Mobile Rewards Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and third in numerous market sectors, with a significant concentrate on academic publications. CIP acts as a threat 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 marketplace share of Cardagin Local Mobile Rewards Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Cardagin Local Mobile Rewards Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market growth. For that reason, intro of digital publishing might show to be an instant solution with low amount of threat for the business. The business could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information related to the customer need, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, showing a threat to the company's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
