Diva Shoes Inc 2 Case Study Solution and Analysis
Introduction
Diva Shoes Inc 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and Diva Shoes Inc 2 Case Study Help in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining 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 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 used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Diva Shoes Inc 2 Case Study Solution has specific strengths that can be used to decrease the threats, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Diva Shoes Inc 2 Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position allows the business to consider several advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restraints for the company in executing its advancement program. The weak points of Diva Shoes Inc 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting Diva Shoes Inc 2 Case Study Help as well, but the development might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has presented specific threats to Diva Shoes Inc 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Diva Shoes Inc 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. The general financial performance of the company might be examined by using the charts provided in the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Diva Shoes Inc 2 Case Study Analysis is growing and the company is rather efficient in bring in a a great deal of clients at a potential price.
In addition to it, the 2nd graph which shows the yearly development in the Diva Shoes Inc 2 Case Study Help overall possessions, shows that the company is rather efficient in adding worth to its assets through its revenues. The growth in possessions shows that the overall value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information could be the analysis regarding the circulation of overall earnings of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Diva Shoes Inc 2 Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful products and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Diva Shoes Inc 2 Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Diva Shoes Inc 2 Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Diva Shoes Inc 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Diva Shoes Inc 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
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 business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an immediate option to prevent the declining industry growth. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially gathers the data related to the customer need, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
