Diva Shoes Inc 3 Case Study Solution and Analysis
Intro
Diva Shoes Inc 3 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and Diva Shoes Inc 3 Case Study Analysis in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue 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 3 Case Study Help has particular strengths that can be utilized to lower the threats, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Diva Shoes Inc 3 Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong monetary position enables the company to think about numerous development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its development program. The weak points of Diva Shoes Inc 3 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining because 2008, impacting Diva Shoes Inc 3 Case Study Help as well, but the growth could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular threats to Diva Shoes Inc 3 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Diva Shoes Inc 3 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly overall revenues of Diva Shoes Inc 3 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in attracting a big number of customers at a prospective price.
Along with it, the 2nd graph which reveals the yearly development in the Diva Shoes Inc 3 Case Study Analysis total possessions, shows that the business is quite efficient in including worth to its assets through its revenues. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the distribution of total revenues of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Diva Shoes Inc 3 Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the general business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Diva Shoes Inc 3 Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should 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 authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Diva Shoes Inc 3 Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Diva Shoes Inc 3 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Diva Shoes Inc 3 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce 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 supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand 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 recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an instant service to prevent the declining industry development. For that reason, introduction of digital publishing could show to be an immediate solution with low quantity of risk for the company. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the information associated with the customer demand, the potential markets, the federal government guidelines and the data connected to the rivals presented in the market. After that, the company needs to decide one prospective segment for its initial offering. It ought to gather research that how it could separate its digital publishing from the existing competitors' items. After all the actions above the company should choose the preliminary offering. The company ought to go for the other markets if the initial offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a danger to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
