Eyebobs Eyewear Inc Case Study Solution and Analysis
Introduction
Eyebobs Eyewear Inc Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and interaction services. Significant service sectors of the business include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. Eyebobs Eyewear Inc Case Study Help has actually become a specialized information company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and Eyebobs Eyewear Inc Case Study Analysis in specific. These elements include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Eyebobs Eyewear Inc Case Study Analysis has particular strengths that can be utilized to reduce the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Eyebobs Eyewear Inc Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to think about several development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restraints for the company in executing its development program. The weak points of Eyebobs Eyewear Inc Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing since 2008, impacting Eyebobs Eyewear Inc Case Study Solution as well, but the development could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually presented particular dangers to Eyebobs Eyewear Inc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Eyebobs Eyewear Inc Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total revenues of Eyebobs Eyewear Inc Case Study Help during 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 attracting a large number of customers at a possible price.
Along with it, the second chart which reveals the annual development in the Eyebobs Eyewear Inc Case Study Solution total assets, shows that the company is rather effective in including value to its assets through its revenues. The growth in properties reveals that the total value of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the circulation of overall revenues of the company. Huge part of the revenues 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 organisation sections with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Eyebobs Eyewear Inc Case Study Help company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices 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 altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Eyebobs Eyewear Inc Case Study Analysis consists of the issues of ecological neighborhoods 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing market China. A brief 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 potential development in the industry tends to draw in new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the digital libraries on certain websites. The changing customer choices towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Eyebobs Eyewear Inc Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Eyebobs Eyewear Inc Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sections, with a major focus on academic publications. CIP acts 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 could wean the market share of Eyebobs Eyewear Inc Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Eyebobs Eyewear Inc Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth 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 business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an immediate option to prevent the decreasing market development. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must initially collects the information related to the consumer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a hazard to the business's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
