Case 2 Mars Incorporated Online Procurement Case Study Solution and Analysis
Intro
Case 2 Mars Incorporated Online Procurement Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing information and interaction services. Major organisation sections of the company consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Case 2 Mars Incorporated Online Procurement Case Study Help has actually become a specialized details service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and Case 2 Mars Incorporated Online Procurement Case Study Help in specific. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change 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 valuable experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Case 2 Mars Incorporated Online Procurement Case Study Help has specific strengths that can be used to minimize the dangers, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Case 2 Mars Incorporated Online Procurement Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective 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 monetary position permits the business to consider numerous development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase restrictions for the business in implementing its development program. The weak points of Case 2 Mars Incorporated Online Procurement Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Case 2 Mars Incorporated Online Procurement Case Study Help as well, however the growth could be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned specific hazards to Case 2 Mars Incorporated Online Procurement Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Case 2 Mars Incorporated Online Procurement Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry together with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly total revenues of Case 2 Mars Incorporated Online Procurement Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a large number of customers at a potential rate.
In addition to it, the 2nd chart which reveals the yearly development in the Case 2 Mars Incorporated Online Procurement Case Study Help overall possessions, shows that the company is quite effective in adding value to its properties through its profits. The development in properties shows that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis concerning the distribution of overall incomes of the company. Huge part of the incomes 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 company segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Case 2 Mars Incorporated Online Procurement Case Study Solution organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Case 2 Mars Incorporated Online Procurement Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines 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 Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the digital libraries on specific websites. The changing customer choices towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Case 2 Mars Incorporated Online Procurement Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Case 2 Mars Incorporated Online Procurement Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in various market sections, with a significant focus on instructional publications. CIP acts 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 might wean the marketplace share of Case 2 Mars Incorporated Online Procurement Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product 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 organisation sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the decreasing market development. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to initially collects the information associated with the consumer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. After that, the business should choose one prospective sector for its preliminary offering. It needs to collect research study that how it might separate its digital publishing from the existing rivals' items. The actions above the company must go for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
