Dominos Pizza Case Study Solution and Analysis
Intro
Dominos Pizza Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and Dominos Pizza Case Study Help in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Dominos Pizza Case Study Analysis has certain strengths that can be used to reduce the dangers, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Dominos Pizza Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong monetary position permits the business to think about numerous development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its development program. The weak points of Dominos Pizza Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Dominos Pizza Case Study Solution too, however the growth might be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually positioned particular risks to Dominos Pizza Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Dominos Pizza Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market together with existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the annual total revenues of Dominos Pizza Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is quite efficient in drawing in a big number of consumers at a potential price.
In addition to it, the second chart which reveals the yearly development in the Dominos Pizza Case Study Help overall assets, reveals that the business is quite effective in adding value to its assets through its profits. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis concerning the circulation of overall profits of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the total political forces impacting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Dominos Pizza Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Dominos Pizza Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider 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 purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Dominos Pizza Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a significant focus on educational publications. CIP acts as a danger 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 marketplace share of Dominos Pizza Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 business sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an instant service to prevent the decreasing industry development. Therefore, introduction of digital publishing might prove to be an immediate option with low amount of danger for the company. Nevertheless, the company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business ought to initially collects the data connected to the consumer need, the possible markets, the government regulations and the information related to the rivals provided in the market. After that, the business must decide one prospective section for its preliminary offering. It ought to collect research study that how it might separate its digital publishing from the existing competitors' items. After all the actions above the company must opt for the initial offering. If the preliminary offering shows a success, the company should go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a threat to the business's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
