Chegg Textbook Rental Takes Flight Case Study Solution and Analysis
Introduction
Chegg Textbook Rental Takes Flight Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing info and interaction services. Significant business sections of the company consist of; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major products include books, regulars, online media, exhibits, research reports and so on. Chegg Textbook Rental Takes Flight Case Study Solution has become a specialized details provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Chegg Textbook Rental Takes Flight Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used 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 Solution has certain strengths that can be used to minimize the threats, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Chegg Textbook Rental Takes Flight Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position permits the company to consider several advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Chegg Textbook Rental Takes Flight Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, 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 development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining given that 2008, impacting Chegg Textbook Rental Takes Flight Case Study Analysis as well, however the development might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has posed particular hazards to Chegg Textbook Rental Takes Flight Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Chegg Textbook Rental Takes Flight Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry together with presence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly total earnings of Chegg Textbook Rental Takes Flight Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is rather effective in bring in a large number of customers at a possible cost.
Together with it, the 2nd graph which shows the yearly development in the Chegg Textbook Rental Takes Flight Case Study Help total assets, reveals that the company is rather effective in including value to its assets through its earnings. The growth in properties shows that the total worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis concerning the distribution of overall incomes of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Chegg Textbook Rental Takes Flight Case Study Help business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Chegg Textbook Rental Takes Flight Case Study Help 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 integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books affect the overall organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Chegg Textbook Rental Takes Flight Case Study Solution. However, the customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Chegg Textbook Rental Takes Flight Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Chegg Textbook Rental Takes Flight Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Chegg Textbook Rental Takes Flight Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Chegg Textbook Rental Takes Flight Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant option to prevent the decreasing industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must initially gathers the data related to the consumer demand, the possible markets, the government policies and the data related to the competitors presented in the market. If the initial offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, revealing a risk to the business's long term presence, however the scenario can be managed by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
