Enchanting Travels B Case Study Solution and Analysis
Intro
Enchanting Travels B Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing industry in general and Enchanting Travels B Case Study Analysis in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 capabilities of the business could be used 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
Enchanting Travels B Case Study Solution has specific strengths that can be made use of to decrease the risks, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Enchanting Travels B Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the company to think about several development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase constraints for the business in executing its advancement program. The weaknesses of Enchanting Travels B Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Enchanting Travels B Case Study Analysis as well, but the growth could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has positioned particular risks to Enchanting Travels B Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Enchanting Travels B Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total revenues of Enchanting Travels B Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a big number of customers at a possible rate.
Along with it, the 2nd graph which reveals the yearly growth in the Enchanting Travels B Case Study Solution overall possessions, shows that the business is rather efficient in adding value to its properties through its profits. 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 company utilizing the provided information could be the analysis relating to the circulation of overall revenues of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored 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 government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Enchanting Travels B Case Study Help in specific 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. Together with it, the economic policies related to the import of books affect the general organisation at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Enchanting Travels B Case Study Help includes the issues of environmental neighborhoods 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 utilized while publishing needs to not be hazardous 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 Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Threat 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 certain websites. The changing customer preferences towards digital knowing increase the hazard of substitution for the market.
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 and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Enchanting Travels B Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Enchanting Travels B Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks 3rd and second in numerous market sectors, with a significant concentrate on instructional publications. CIP serves 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 might wean the marketplace share of Enchanting Travels B Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Enchanting Travels B Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 company sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an instant service to prevent the declining industry development. Intro of digital publishing might show to be an immediate service with low amount of danger for the company. The business could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information related to the consumer demand, the prospective markets, the government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a threat to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
