Changing Light Bulbs Westinghouse Super Bulb Case Study Solution and Analysis
Intro
Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing info and communication services. Major business segments of the business include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items consist of books, periodicals, online media, exhibits, research reports etc. Changing Light Bulbs Westinghouse Super Bulb Case Study Help has actually become a specialized information supplier and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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
Changing Light Bulbs Westinghouse Super Bulb Case Study Solution has certain strengths that can be utilized to lower the threats, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position allows the business to consider several development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase constraints for the company in executing its development program. The weaknesses of Changing Light Bulbs Westinghouse Super Bulb Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis as well, however the growth could be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has postured certain dangers to Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market 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 promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP might not be calculated. The overall monetary performance of the company could be analyzed by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis is growing and the business is rather effective in drawing in a a great deal of consumers at a potential rate.
In addition to it, the second graph which shows the yearly development in the Changing Light Bulbs Westinghouse Super Bulb Case Study Help total properties, reveals that the business is rather efficient in including worth to its assets through its earnings. The development in properties reveals that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis concerning the distribution of overall profits of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP business are high. The federal government policies concerning 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 rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading helpful products etc. China has the highest population worldwide with a high population growth, showing the increasing variety of consumers of the Changing Light Bulbs Westinghouse Super Bulb Case Study Solution. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing might lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis includes the issues of environmental 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 regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Changing Light Bulbs Westinghouse Super Bulb Case Study Analysis include the providers of the paper for releasing 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 Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Changing Light Bulbs Westinghouse Super Bulb Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in various market sections, with a major focus on academic publications. CIP functions 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 Changing Light Bulbs Westinghouse Super Bulb Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing industry development. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company ought to initially collects the data related to the consumer demand, the prospective markets, the government policies and the data related to the rivals presented in the market. If the preliminary offering shows 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
The development of the publishing industry is decreasing because 2008, revealing a danger to the company's long term presence, however the situation can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
