Cost Control Strategy Of Uber Case Study Solution and Analysis
Intro
Cost Control Strategy Of Uber Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Cost Control Strategy Of Uber Case Study Solution in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
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 valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cost Control Strategy Of Uber Case Study Analysis has certain strengths that can be made use of to reduce the hazards, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Cost Control Strategy Of Uber Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the business to think about numerous development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restraints for the business in implementing its advancement program. The weak points of Cost Control Strategy Of Uber Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, 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 development. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Cost Control Strategy Of Uber Case Study Solution as well, however the growth could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has positioned certain risks to Cost Control Strategy Of Uber Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Cost Control Strategy Of Uber Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the annual total profits of Cost Control Strategy Of Uber Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is rather efficient in bring in a large number of customers at a possible rate.
In addition to it, the 2nd graph which reveals the yearly development in the Cost Control Strategy Of Uber Case Study Solution total properties, shows that the business is rather effective in adding worth to its properties through its incomes. The development in properties reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis relating to the distribution of total revenues of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Cost Control Strategy Of Uber Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the financial policies related to the import of books affect the total company at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Cost Control Strategy Of Uber Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Cost Control Strategy Of Uber Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Cost Control Strategy Of Uber Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Cost Control Strategy Of Uber Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry growth. Intro of digital publishing could prove to be an immediate service with low amount of danger for the company. The company could also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data associated with the consumer demand, the prospective markets, the federal government guidelines and the data connected to the competitors presented in the market. After that, the company needs to decide one prospective section for its preliminary offering. It needs to collect research that how it could distinguish its digital publishing from the existing competitors' products. After all the actions above the business ought to opt for the initial offering. The company needs to go for the other markets if the initial offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a risk to the business's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
