Chegg Textbook Rental Takes Flight Case Study Solution and Analysis
Intro
Chegg Textbook Rental Takes Flight Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing industry in basic and Chegg Textbook Rental Takes Flight Case Study Solution in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Chegg Textbook Rental Takes Flight Case Study Help has certain strengths that can be utilized to decrease the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Chegg Textbook Rental Takes Flight Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong financial position allows the business to consider several advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weaknesses of Chegg Textbook Rental Takes Flight Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Chegg Textbook Rental Takes Flight Case Study Solution as well, but the growth might be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned certain threats to Chegg Textbook Rental Takes Flight Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Chegg Textbook Rental Takes Flight Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. The general monetary performance of the business might be examined by utilizing the graphs offered in the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Chegg Textbook Rental Takes Flight Case Study Help is growing and the business is rather efficient in bring in a a great deal of consumers at a potential rate.
Along with it, the 2nd chart which reveals the annual growth in the Chegg Textbook Rental Takes Flight Case Study Help total possessions, reveals that the company is quite efficient in including worth to its assets through its incomes. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the circulation of total earnings of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant 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 Party of China. It might be stated that the total political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Chegg Textbook Rental Takes Flight Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the overall organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Chegg Textbook Rental Takes Flight Case Study Analysis includes the concerns of ecological 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on 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 Supplier.
The significant suppliers of the Chegg Textbook Rental Takes Flight Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Chegg Textbook Rental Takes Flight Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
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 business to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate option to avoid the declining market development. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to first gathers the data related to the consumer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. After that, the company must choose one potential section for its initial offering. It ought to gather research study that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the company need to choose the initial offering. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a threat to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
