Extending The Easy Business Model Solution Case Study Solution and Analysis
Intro
Extending The Easy Business Model Solution Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing information and communication services. Major service sectors of the company include; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports etc. Extending The Easy Business Model Solution Case Study Analysis has become a specialized info company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Extending The Easy Business Model Solution Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Extending The Easy Business Model Solution Case Study Solution has specific strengths that can be used to decrease the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Extending The Easy Business Model Solution Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position enables the business to consider 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 company in implementing its development program. The weak points of Extending The Easy Business Model Solution Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Extending The Easy Business Model Solution Case Study Analysis too, however the development could be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually posed specific hazards to Extending The Easy Business Model Solution Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Extending The Easy Business Model Solution Case Study Help due to the consumer shift towards virtual 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 gain a strong customer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be determined. The total monetary efficiency of the business might be evaluated by using the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Extending The Easy Business Model Solution Case Study Solution is growing and the company is rather effective in drawing in a a great deal of customers at a prospective rate.
In addition to it, the second graph which reveals the annual development in the Extending The Easy Business Model Solution Case Study Analysis total possessions, reveals that the company is quite effective in including value to its properties through its revenues. The growth in properties reveals that the overall value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis regarding the circulation of overall earnings of the business. Major part of the incomes 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 company segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the performance of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand 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 ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Extending The Easy Business Model Solution Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw 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.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Extending The Easy Business Model Solution Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Extending The Easy Business Model Solution Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate service to avoid the decreasing industry growth. The business might also 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 must initially gathers the information related to the customer need, the prospective markets, the government policies and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a threat to the business's long term presence, however the circumstance can be managed by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
