Enchanting Travels Case Study Solution and Analysis
Introduction
Enchanting Travels Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering information, processing details and communication services. Significant business sectors of the business include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major products consist of books, regulars, online media, exhibitions, research reports etc. Enchanting Travels Case Study Help has actually become a specialized information company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Enchanting Travels Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Enchanting Travels Case Study Solution has particular strengths that can be utilized to lower the threats, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Enchanting Travels Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position allows the business to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Enchanting Travels Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining considering that 2008, affecting Enchanting Travels Case Study Analysis as well, however the development might be revived by availing particular chances presented in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has positioned particular risks to Enchanting Travels Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Enchanting Travels Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors 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 particular strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. The overall financial performance of the company could be examined by utilizing the charts offered in the case Appendices. It could be examined from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Enchanting Travels Case Study Solution is growing and the business is quite efficient in bring in a a great deal of clients at a prospective rate.
Along with it, the 2nd chart which shows the yearly development in the Enchanting Travels Case Study Analysis total assets, reveals that the business is rather efficient in adding worth to its properties through its incomes. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Enchanting Travels Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Enchanting Travels Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs 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 individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. However, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Enchanting Travels Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Enchanting Travels Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in different market segments, with a significant concentrate on instructional publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Enchanting Travels Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company 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: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present 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 value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing industry development. Introduction of digital publishing might show to be an immediate option with low amount of threat for the business. 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 must first gathers the information related to the customer need, the potential markets, the government guidelines and the information connected to the rivals provided in the market. After that, the company needs to decide one prospective section for its preliminary offering. It ought to gather research study that how it might distinguish its digital publishing from the existing rivals' items. After all the steps above the business need to go for the preliminary offering. The business must go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a threat to the company's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
