City Year The Journey Case Study Solution and Analysis
Introduction
City Year The Journey Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing info and interaction services. Significant business sectors of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items consist of books, regulars, online media, exhibitions, research reports and so on. City Year The Journey Case Study Solution has become a specialized information service provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and City Year The Journey Case Study Analysis in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of 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 company could be used 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
City Year The Journey Case Study Help has certain strengths that can be utilized to decrease the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of City Year The Journey Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position enables the business to consider numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase constraints for the company in implementing its development program. The weak points of City Year The Journey Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting City Year The Journey Case Study Help as well, however the development could be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has presented certain threats to City Year The Journey Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of City Year The Journey Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly total revenues of City Year The Journey Case Study Analysis throughout the period 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 quite efficient in drawing in a large number of consumers at a possible cost.
Along with it, the second chart which reveals the annual development in the City Year The Journey Case Study Help total assets, reveals that the business is rather efficient in including value to its properties through its earnings. The growth in properties reveals that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis regarding the distribution of overall revenues of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading useful materials and so on. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the City Year The Journey Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting City Year The Journey Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the documents presented in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the City Year The Journey 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 total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of City Year The Journey Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the popular gamers in the publishing market 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 opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate service to prevent the declining industry development. Introduction of digital publishing might show to be an instant solution with low amount of danger for the business. The business could also 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 needs to first collects the data related to the customer need, the prospective markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a hazard to the company's long term existence, however the situation can be managed by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
