Dance A Boogie 2 Case Study Solution and Analysis
Intro
Dance A Boogie 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and communication services. Major organisation segments of the company consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports and so on. Dance A Boogie 2 Case Study Solution has become a specialized details service provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Dance A Boogie 2 Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several questions 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 abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Dance A Boogie 2 Case Study Help has certain strengths that can be utilized to reduce the risks, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Dance A Boogie 2 Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong monetary position allows the business to think about several development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of Dance A Boogie 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Dance A Boogie 2 Case Study Solution as well, however the growth might be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has postured specific dangers to Dance A Boogie 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Dance A Boogie 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be computed. Nevertheless, the total monetary efficiency of the company could be evaluated by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Dance A Boogie 2 Case Study Solution is growing and the company is rather efficient in drawing in a large number of clients at a prospective rate.
In addition to it, the second graph which reveals the yearly growth in the Dance A Boogie 2 Case Study Analysis total assets, reveals that the company is quite efficient in adding worth to its possessions through its profits. The development in properties shows that the total worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of overall incomes of the business. Huge part of the earnings 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 service sectors with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Dance A Boogie 2 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books affect the general service at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Dance A Boogie 2 Case Study Solution consists of the issues of environmental 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 damaging 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 Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the files presented in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Dance A Boogie 2 Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Dance A Boogie 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an instant solution to prevent the declining market development. Intro of digital publishing could show to be an immediate solution with low amount of risk for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should first gathers the information related to the customer demand, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, showing a risk to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
