Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution and Analysis
Introduction
Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing information and interaction services. Significant company segments of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant items include books, periodicals, online media, exhibits, research study reports etc. Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution has ended up being a specialized info service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining 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 several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution has specific strengths that can be used to lower the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the company to consider several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which might increase restrictions for the business in executing its advancement program. The weaknesses of Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution as well, but the growth could be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has postured particular dangers to Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP could not be calculated. However, the general monetary efficiency of the business might be analyzed by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution is growing and the company is quite efficient in attracting a large number of consumers at a potential price.
Together with it, the 2nd graph which reveals the yearly development in the Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Help total possessions, shows that the company is rather effective in adding worth to its assets through its incomes. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the given information could be the analysis regarding the distribution of total revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals 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. For that reason, it might be stated that the total political forces affecting Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Help organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the total service at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful materials and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the files presented in the virtual libraries on certain sites. The altering consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Dragonfly Therapeutic Retreats Crafting A Winning Proposition Case Study Analysis include;.
• Chemical Industry 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market growth. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to initially collects the information related to the customer demand, the potential markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a threat to the business's long term presence, however the situation can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
