Enchanting Travels B Case Study Solution and Analysis
Introduction
Enchanting Travels B Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing details and interaction services. Significant service sectors of the company consist of; books, periodicals, consultancy and distribution. The business has a large product portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports and so on. Enchanting Travels B Case Study Analysis has actually ended up being a specialized information service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and Enchanting Travels B Case Study Analysis in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Enchanting Travels B Case Study Help has specific strengths that can be made use of to minimize the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Enchanting Travels B Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong monetary position enables the company to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Enchanting Travels B Case Study Solution are given 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 development. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Enchanting Travels B Case Study Analysis also, but the growth could be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition 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 large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually posed specific dangers to Enchanting Travels B Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Enchanting Travels B Case Study Analysis 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 rivals can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total profits of Enchanting Travels B Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather effective in drawing in a large number of clients at a prospective price.
In addition to it, the second graph which shows the annual development in the Enchanting Travels B Case Study Solution overall possessions, shows that the company is rather effective in adding value to its assets through its earnings. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the distribution of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence 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 guided by the Promotion Department of the Communist Party of China. It might be said that the overall political forces impacting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials and so on. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Enchanting Travels B Case Study Analysis. Nevertheless, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Enchanting Travels B Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the digital libraries on certain sites. The altering customer choices towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Enchanting Travels B Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Enchanting Travels B Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an instant option to avoid the decreasing industry development. Introduction of digital publishing might show to be an immediate service with low amount of danger for the business. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to first collects the data related to the consumer demand, the potential markets, the government policies and the information related to the competitors provided in the market. If the initial offering proves a success, the business needs 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 declining since 2008, showing a hazard to the business's long term presence, but the scenario can be managed by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
