Easy Profit A Revenue Management Pilot Case Study Solution and Analysis
Intro
Easy Profit A Revenue Management Pilot Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and Easy Profit A Revenue Management Pilot Case Study Analysis in specific. These factors include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities 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
Easy Profit A Revenue Management Pilot Case Study Help has particular strengths that can be utilized to lower the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Easy Profit A Revenue Management Pilot Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the company to consider numerous development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase constraints for the business in executing its advancement program. The weak points of Easy Profit A Revenue Management Pilot Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Easy Profit A Revenue Management Pilot Case Study Solution as well, however the growth might be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has presented certain risks to Easy Profit A Revenue Management Pilot Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Easy Profit A Revenue Management Pilot Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total revenues of Easy Profit A Revenue Management Pilot Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in bring in a big number of consumers at a prospective price.
Along with it, the 2nd chart which shows the yearly development in the Easy Profit A Revenue Management Pilot Case Study Solution overall properties, shows that the company is quite efficient in adding value to its properties through its incomes. The growth in possessions shows that the total worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis concerning the circulation of total incomes of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed 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 conducted to discover the various external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences 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 customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Easy Profit A Revenue Management Pilot Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number 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 also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Easy Profit A Revenue Management Pilot Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Easy Profit A Revenue Management Pilot Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the 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 company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an instant option to avoid the decreasing industry development. For that reason, introduction of digital publishing could prove to be an instant service with low amount of risk for the business. However, the company could also think about 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 first gathers the information related to the customer need, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a risk to the business's long term existence, however the situation can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
