Double Double Toil And Trouble Case Study Solution and Analysis
Introduction
Double Double Toil And Trouble Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing information and interaction services. Significant service sections of the company include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. Double Double Toil And Trouble Case Study Help has become a specialized information service provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Double Double Toil And Trouble Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Double Double Toil And Trouble Case Study Help has particular strengths that can be used to decrease the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Double Double Toil And Trouble Case Study Help in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position permits the company to consider numerous advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Double Double Toil And Trouble Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Double Double Toil And Trouble Case Study Help as well, but the development could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented specific dangers to Double Double Toil And Trouble Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Double Double Toil And Trouble Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP might not be calculated. The general financial efficiency of the business might be analyzed by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Double Double Toil And Trouble Case Study Solution is growing and the business is rather effective in drawing in a large number of clients at a prospective price.
Together with it, the second graph which reveals the annual development in the Double Double Toil And Trouble Case Study Solution overall possessions, shows that the company is quite efficient in including value to its properties through its incomes. The growth in assets shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the distribution of overall earnings of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Double Double Toil And Trouble Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized 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 approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the digital libraries on specific sites. The altering customer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry 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 competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Double Double Toil And Trouble Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Double Double Toil And Trouble Case Study Solution include;.
• 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 situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Double Double Toil And Trouble Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact 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: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections 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 external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business require an immediate option to avoid the decreasing market growth. Introduction of digital publishing might prove to be an instant solution with low amount of danger for the company. The company might likewise 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 should initially gathers the data related to the customer need, the potential markets, the government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a risk to the business's long term presence, however the situation can be controlled by considering a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
