Economics Game Theory Case Study Solution and Analysis
Introduction
Economics Game Theory Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Economics Game Theory Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and CMP in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement 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 valuable experience, technical resources and the abilities of the company could be utilized 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
Economics Game Theory Case Study Solution has specific strengths that can be made use of to lower the risks, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Economics Game Theory Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong monetary position enables the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its development program. The weak points of Economics Game Theory Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Economics Game Theory Case Study Analysis as well, however the development might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has positioned specific hazards to Economics Game Theory Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Economics Game Theory Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be computed. The overall financial performance of the company might be evaluated by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Economics Game Theory Case Study Solution is growing and the business is rather effective in drawing in a large number of customers at a potential rate.
Along with it, the 2nd chart which reveals the annual growth in the Economics Game Theory Case Study Solution overall properties, reveals that the business is quite effective in including worth to its possessions through its incomes. The growth in possessions shows that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis concerning the distribution of total revenues of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Economics Game Theory Case Study Help company are high. The government policies relating to 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 costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful products etc. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Economics Game Theory Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Economics Game Theory Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Economics Game Theory Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Economics Game Theory Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a major concentrate on instructional publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Economics Game Theory Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Economics Game Theory Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant service to avoid the decreasing market growth. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the customer demand, the prospective markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a hazard to the business's long term existence, however the situation can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
