City Year The Journey Case Study Solution and Analysis
City Year The Journey Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing details and communication services. Significant organisation segments of the company include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. City Year The Journey Case Study Help has become a specialized info service provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, City Year The Journey Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation 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 scenario? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
City Year The Journey Case Study Analysis has specific strengths that can be used to decrease the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of City Year The Journey Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position enables the business to consider several advancement opportunities with no worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of City Year The Journey Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to attain long term development.
The development of the publishing industry is declining because 2008, affecting City Year The Journey Case Study Help as well, however the development could be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed particular threats to City Year The Journey Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing 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 risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the threat of losing the consumer base.
Due to lack of data, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly overall earnings of City Year The Journey Case Study Solution during 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 company is quite effective in bring in a large number of clients at a prospective rate.
In addition to it, the 2nd chart which shows the annual growth in the City Year The Journey Case Study Help total possessions, shows that the business is quite efficient in including worth to its possessions through its earnings. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis relating to the circulation of overall revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a possible growth to accomplish its future development objective.
PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting City Year The Journey Case Study Analysis business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental forces impacting City Year The Journey Case Study Analysis consists of the issues of ecological communities 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 ought to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal 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 might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents presented in the digital libraries on specific websites. The altering consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the City Year The Journey Case Study Analysis include the suppliers of the paper for releasing 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 existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of City Year The Journey Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as City Year The Journey Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors 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 company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an instant service to avoid the decreasing market development. For that reason, intro of digital publishing could show to be an instant option with low quantity of risk for the business. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must initially collects the data related to the customer need, the possible markets, the federal government policies and the information connected to the competitors presented in the market. After that, the business should choose one potential section for its initial offering. It ought to gather research study that how it might distinguish its digital publishing from the existing rivals' items. The actions above the business must go for the preliminary offering. If the initial offering proves a success, the company should opt for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing market is declining considering that 2008, revealing a hazard to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.